BAE Systems (BA.) will buy the military global positioning system (GPS) business belonging to Collins Aerospace, a subsidiary of US defence giant UTC (US:UTX), for $1.9bn (£1.5bn). BAE has also agreed to acquire Raytheon's (US:RTN) Airborne Tactical Radios business for $275m in cash.
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The businesses were made available for acquisition as part of the regulatory process overseeing the merger of UTC and Raytheon, which is expected to close this year. BAE will fund its GPS purchase with fresh debt. It expects the business to generate revenues of around $359m in 2020.