BAE system purchases military GPS business from Collins for £1.46m

BAE System is paying $1.9bn for the GPS for the business of Collins Aerospace, which specialising in GPS receivers for the US military, revealing a renewed sense of direction.

This deal will help the military maintain its core competencies of breaking things and killing people. The Unit sold by UTC-Raytheon should be annexed into electronics systems of BAE’s biggest division.

Faith in conventional forces has lifted the budget that floats more warships which include Australian Hunter-class frigates, among the BAE contract, wins in 2018.

The Collins purchase should enhance order for equipment conforming to the long-delayed M3 US GPS standard.

UTC-Raytheon is making the disposal to win regulatory approval for its own merger as the decision to ditch Raytheon’s big GPS business and retain UTC’s smaller operation will raise a question about the asset’s quality.

The price will look cheaper when discounted for a $365m tax credit, which means BAE is paying 12 times forward Ebitda and can cut costs by $15m a year.