NEW YORK, Sept. 5 (Xinhua) -- United Technologies is acquiring Rockwell Collins for about 30 billion U.S. dollars in order to expand its aerospace business.
United Technologies, which makes Pratt & Whitney engines and UTC Aerospace Systems, said on Monday that it will acquire Rockwell Collins for 140 dollars per share in cash and stock.
The purchase price implies a total equity value of 23 billion dollars and a total transaction value of 30 billion dollars, including Rockwell Collins' net debt.
Rockwell Collins offers cabin interiors, flight deck, flight controls products for commercial and military customers.
"The integrated companies' expertise in developing electrical, mechanical and software solutions will allow us to deliver more innovative products and services and provide greater value to our customers and shareowners," said Greg Hayes, United Technologies' Chairman and Chief Executive Officer.
Under the terms of the agreement between the two companies, each Rockwell Collins shareowner will receive 93.33 dollars per share in cash and 46.67 dollars in shares of United Technologies common stock, subject to a 7.5 percent collar centered on United Technologies' Aug. 22, 2017 closing share price of 115.69 dollars.
The companies expect the deal to close by the third quarter next year, subject to approval by Rockwell Collins' shareowners, as well as other customary closing conditions, including the receipt of required regulatory approvals.
Shares of United Technologies fell 3.87 percent to 113.36 U.S. dollars apiece in early trading on Tuesday, while shares of Rockwell Collins rose 0.70 percent to 131.52 U.S. dollars apiece.
A single purchase
