Tyco Electronics has entered into an agreement to sell M/A-COM, its radio frequency components and subsystem business to Cobham Defense Electronic Systems, a subsidiary of Cobham, for $425m in cash.
The transaction is subject to customary regulatory approvals and is expected to close by the end of the calendar year.
A&D, which employs around 1,000 people based principally in
Its products include a range of aerospace and defence, space, force protection and homeland security solutions that are currently used on platforms including the F-35, the Advanced Medium-Range Air-to-Air Missile (AMRAAM), and Maritime Multi-role Aircraft (MMA).
It is anticipated that in 2008 the aerospace and defence (A&D) business of M/A-COM will be just under 40 per cent of its total revenue. For the year ended 30 September 2007, M/A-COM generated total operating profits of $37.9m and EBITDA of $62.9m on revenue of $477.7m. In September 2007, M/A-COM’s gross assets were approximately $287.6m.
Cobham said in a statement that the take over is in line with its strategy to grow through acquisition, thus reinforcing existing strengths, key technologies and market positions.
It aims to become a global Tier 2 subsystem supplier of integrated RF front ends for radars and electronic warfare (EW) systems and the acquisition of M/A-COM is a significant step forward in the execution of this objective.
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