WALTHAM, Mass., Sept. 1, 2009 - Raytheon Company (NYSE: RTN) has entered into an agreement to acquire BBN Technologies, a privately-held world leader in research and development, and provider of critical solutions for national defense and security missions. The transaction is expected to close in the fourth quarter of 2009 subject to customary closing conditions and regulatory approvals. The transaction is not expected to materially impact revenue or earnings per share for the fourth quarter of 2009, and is expected to be accretive in 2010. Terms of the agreement are not being disclosed.
BBN's diverse portfolio encompasses a range of technologies including advanced networking, speech and language technologies, information technologies, sensor systems, and cybersecurity. The company's deep scientific and engineering talent aligns well with Raytheon's expertise and commitment to excellence.
"BBN brings world class people, technologies and capabilities to Raytheon and our customers," said William H. Swanson, Chairman and Chief Executive Officer, Raytheon Company. "We expect all of our businesses to benefit from the application of BBN's research and development expertise and technologies across our product lines and programs. BBN's rich technology heritage makes this a natural fit."
BBN Technologies has a long history of innovative products and solutions including the ARPANET (forerunner of the Internet). Current offerings include the Boomerang acoustic-based shooter detection system currently deployed with U.S. forces, and a broad range of technology development programs, many considered mission-critical by defense and intelligence customers.
Following the acquisition, BBN Technologies will become part of Raytheon Network Centric Systems (NCS).
"BBN's products and technical capabilities will enhance NCS' ability to offer critically important solutions to our customers," said Colin Schottlaender, president, Network Centric Systems. "This acquisition will strengthen our positions in networking, communications, video surveillance and advanced sensing applications."
Based in Cambridge, Massachusetts, BBN employs 700 employees in seven U.S. locations.
"BBN has extraordinary technical depth in the areas in which we work," said Robert G. Elmer, president and CEO of BBN Technologies. "Joining Raytheon, an organization with very strong technical expertise and significant resources, will help us to broaden our reach, acting as a multiplier on our proven ability to deliver advances to the market rapidly and profitably, and better serve our ultimate client, the U.S. warfighter."
Raytheon Company, with 2008 sales of $23.2 billion, is a technology and innovation leader specializing in defense, homeland security and other government markets throughout the world. With a history of innovation spanning 87 years, Raytheon provides state-of-the-art electronics, mission systems integration and other capabilities in the areas of sensing; effects; and command, control communications and intelligence systems; as well as a broad range of mission support services. With headquarters in Waltham, Mass., Raytheon employs 73,000 people worldwide.
Disclosure Regarding Forward-looking Statements
This release contains forward-looking statements regarding the expected closing of the acquisition and the performance of Raytheon following the completion of the acquisition. These forward-looking statements are based on Raytheon's current expectations and are necessarily subject to associated risks related to, among other things, the successful completion of the acquisition and the ability of Raytheon to successfully integrate BBN Technologies and to achieve expected benefits. Actual results may differ materially from what is expressed or implied by the forward-looking statements. For information regarding other related risks, please see the "Risk Factors" section of Raytheon's filings with the Securities and Exchange Commission, including its most recent filings on Form 10-K.
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