Raytheon, United Technologies to Merge

A F-35B Lightning II during the Marine Corps Air Station Beaufort Air Show in April. UTC Technologies Corp., now merged with Raytheon Co., is the manufacturer of the engine used in the F-35. U.S. Marine Corps/Warrant Officer Bobby J. Yarbrough

ARLINGTON,
Va. — The merger of the Raytheon Co. and United Technologies Corp. (UTC),
announced June 9, will result in a defense company with a broad portfolio in
weapons, sensors, mission systems, avionics and propulsion.

In a joint
announcement, Raytheon and UTC said they entered into an agreement to merge, naming
the merged company Raytheon Technologies Corp.

“The transaction will create a premier systems provider with
advanced technologies to address rapidly growing segments within aerospace and
defense,” the announcement said. “The merger of Raytheon, a leading defense
company, and United Technologies, a leading aerospace company, comprised of Collins
Aerospace and Pratt & Whitney, will offer a complementary portfolio of
platform-agnostic aerospace and defense technologies.”

Raytheon
is known for missiles and other aerial weapons, radars, undersea weapons,
command-and-control systems and mission systems among other systems. UTC is the
manufacturer of the F135 engine used on the F-35. Collins is known for cockpit
avionics and other aircraft systems.

“Areas of joint advancement include, but are not limited to:
hypersonics and future missile systems; directed energy weapons; intelligence,
surveillance, and reconnaissance (ISR) in contested environments; cyber
protection for connected aircraft; next generation connected airspace; and
advanced analytics and artificial intelligence for commercial aviation,” the
companies’ announcement said.

“The merger of Raytheon … and United Technologies … will offer a complementary portfolio of platform-agnostic aerospace and defense technologies.”

Raytheon-UTC Merger announcement

Raytheon’s four business sectors will be consolidated into
two sectors, Intelligence, Space and Airborne Systems and Integrated Defense and
Missile Systems. The UTC sectors Collins Aerospace and Pratt & Whitney will
form the third and fourth sectors of Raytheon Technologies.

Tom Kennedy, the current chairman and chief executive
officer of Raytheon, will be appointed executive chairman of Raytheon Technologies
and Greg Hayes will be named CEO. Two years following the close of the
transaction, Hayes will assume the role of chairman and CEO. The company will
remain headquartered in the Boston area.

UTC’s
Carrier and Otis sectors are expected to be spun off into separate companies in
2020.