CEDAR RAPIDS, Iowa—Communication and aviation electronics firm Rockwell Collins, Inc. has agreed to acquire ARINC Inc. from The Carlyle Group for $1.39 billion.
The deal will bring together two leading players in the growing field of aviation information management, combining ARINC’s networks and services with avionics and cabin technologies developed by Rockwell Collins.
“Strategically, this acquisition is a natural fit for Rockwell Collins,” said Kelly Ortberg, Rockwell Collins CEO and president. “It accelerates our strategy to develop comprehensive information management solutions by building on our existing information-enabled products and systems and ARINC’s ground–based networks and services to further expand our opportunities beyond the aircraft.”
ARINC—which is expected to post 2013 revenues of about $600 million—develops communications throughout the entire aviation eco-system, including pilots, operators, maintenance, passengers, controllers, regulators, security, and airport operations. The firm also provides communications and information processing for the rail, industrial security and public safety segments.
“ARINC’s strong customer base, high customer retention rates and subscription business model will help the company achieve accelerated growth and benefit from greater earnings consistency throughout the commercial aviation business cycle,” added Ortberg.
“Rockwell Collins’ expertise in managing information on-board the aircraft, coupled with our innovative and reliable air to ground communications services, will be instrumental in providing new integrated information management solutions for our customers,” said ARINC Chairman and Chief Executive Officer John Belcher.