Aerojet Rocketdyne serves both domestic and international customers with propulsion systems and energetics to the space, missile defence and strategic systems, and tactical systems areas
L3Harris Technologies has agreed to acquire US-based aerospace and defence company Aerojet Rocketdyne in a deal worth $4.7bn, which is inclusive of the latter’s debt.
As per the terms of the agreement, shareholders of the California-based publicly-listed firm will be paid $58 per share in cash by L3Harris Technologies.
Aerojet Rocketdyne serves both domestic and international customers with propulsion systems and energetics to the space, missile defence and strategic systems, and tactical systems areas.
Serving the likes of the US Department of Defense (DoD), NASA, and others, Aerojet Rocketdyne is claimed to lead the industry with investments in rocket propulsion that improve the country’s integrated deterrence and support warfighters.
Currently, the company generates about $2.3bn in annual revenue.
Aerojet Rocketdyne president and CEO Eileen Drake said: “This agreement will accelerate innovation for national security propulsion solutions while providing a premium cash value for our shareholders and tremendous benefits for our employees, customers, partners and the communities in which we operate.
“Joining L3Harris is a testament to the world-class organization and team we’ve built and represents a natural next phase of our evolution.
“As part of L3Harris, we will bring our advanced technologies together with their substantial expertise and resources to accelerate our shared purpose: enabling the defence of our nation and space exploration.”
According to L3Harris Technologies, the deal will bolster the merchant supplier available to the defence industrial base and its clients to effectively manage both current and emerging threats.
Besides, it is expected to foster scientific discovery and innovation through focused investment in advanced missile technologies, hypersonics, and others.
L3Harris Technologies CEO and chair Christophe Kubasik said: “We’ve heard the DoD leadership loud and clear: they want high-quality, innovative and cost-effective solutions to meet both current and emerging threats, and they’re relying upon a strong, competitive industrial base to deliver those solutions.
“With this acquisition, we will use the combined talents of more than 50,000 employees to drive continuous process improvement, enhance business operations and elevate the performance of this crucial national asset.”
The deal, which is subject to regulatory approvals, clearances, and other customary conditions, is anticipated to close in 2023.
Recently, L3Harris Technologies was awarded a contract from the US Army Communications-Electronics Command, potentially worth up to $886m, to support intelligence, surveillance, and reconnaissance capabilities for the US Army, US DoD, and intelligence community.