Rockwell Collins To Buy Arinc for $1.4 Billion
Rockwell Collins is purchasing Arinc from The Carlyle Group for $1.39 billion, the companies announced on Sunday. The purchase is subject to “regulatory approvals and other customary conditions.” Arinc’s ground-based data network and radio communications network serves airlines, airports and airport security, among others.
Carlyle purchased Arinc in 2007 from Boeing and the group of airlines that owned the firm. Last year, Booz Allen Hamilton bought Arinc’s defense business, which helped make the current agreement to sell Arinc more achievable.
“We’ve always been interested in Arinc’s core aviation business,” said Rockwell Collins CEO Kelly Ortberg. “The challenge was that the business it divested to Booz Allen provided engineering services to the U.S. Department of Defense. Part of those services included supporting the department in writing requests for proposals and specifications for product equipment competitions, which created a huge conflict with our government products business.”
After the acquisition, Rockwell Collins’s business will be split about 54 percent commercial and 46 percent government. Arinc itself consists of about 87 percent commercial aviation activity, Ortberg explained, “So this clearly is a new platform that swings our mix more toward the commercial sector.”