Raytheon, United Technologies merge to form Raytheon Technologies Corporation

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Raytheon and aerospace company United Technologies have entered into an agreement to combine in an all-stock merger of equals, resulting in a combined company called Raytheon Technologies Corp. 

The transaction will create what the companies call a “premier systems provider with advanced technologies to address rapidly growing segments within aerospace and defense.” Together, the companies say that they will offer a complementary portfolio of platform-agnostic aerospace and defense technologies.

Raytheon Technologies Corp. will offer expanded technology and research and development capabilities to deliver “innovative and cost-effective solutions aligned with customer priorities and the national defense strategies of the U.S. and its allies and friends,” the companies say. They also note that the combined company does not include Otis and Carrier, which are expected to be separated from United Technologies in the first half of 2020.

“Today is an exciting and transformational day for our companies, and one that brings with it tremendous opportunity for our future success,” says Tom Kennedy, Raytheon chairman and CEO.

“With our enhanced capabilities, we will deliver value to our customers by anticipating and addressing their most complex challenges, while delivering significant value to shareowners.”

The terms of the agreement were unanimously approved by the Boards of Directors of both companies. Under the terms of the agreement, Raytheon shareowners will receive 2.3348 shares in the combined company for each Raytheon share. Once the merger is complete, United Technologies shareowners will own approximately 57 percent and Raytheon shareowners will own approximately 43 percent of the combined company on a fully diluted basis.

The merger is expected to close in the first half of 2020, following United Technologies’ completion of the separation of its Otis and Carrier businesses.

“The combination of United Technologies and Raytheon will define the future of aerospace and defense,” says Greg Hayes, United Technologies chairman and CEO.

“Our two companies have iconic brands that share a long history of innovation, customer focus and proven execution. By joining forces, we will have unsurpassed technology and expanded R&D capabilities that will allow us to invest through business cycles and address our customers' highest priorities. Merging our portfolios will also deliver cost and revenue synergies that will create long-term value for our customers and shareowners.”