Rockwell Collins to Acquire ARINC for US$ 1.39 Bil.

Cedar Rapids, IA, August 21, 2013 — Rockwell Collins, Inc. is acquiring ARINC Inc., a communications engineering and information processing solutions company, for US$ 1.39 billion.

The transaction is seen to bring together two leading players in the growing field of aviation information management, combining ARINC’s trusted networks and services with the industry leading avionics and cabin technologies developed by Rockwell Collins, especially with the rapid “digitization” of airline communications.

In the field of air traffic control, voice communications between pilots and controllers are increasingly replaced with digital data messaging. ARINC’s sophisticated ground infrastructure today provides one of two major pipes for routing those messages, making the company an attractive catch for investors.

Kelly Ortberg, Chief Executive Officer and President of Rockwell, said the purchase accelerates the company’s strategy to develop comprehensive information management solutions by building its existing information-enabled products and systems and ARINC's ground–based networks and services to further expand opportunities beyond the aircraft.

Founded in 1929 as a communications provider for airlines during the emergence of commercial air travel in the United States, ARINC has evolved into a leading provider of engineering solutions in the aerospace, aviation, airports, government, networks, security, transportation industries and public safety with products and services in over 150 countries worldwide. The company is headquartered in Annapolis, Maryland with regional headquarters in London and Singapore.

ARINC, owned by The Carlyle Group, broadly touches the entire aviation eco-system, including pilots, operators, maintenance, passengers, controllers, regulators, security, and airport operations. In addition, ARINC provides communications and information processing for the rail, industrial security and public safety segments. Their 2013 revenues are expected to be in excess of $600 million. When completed, the acquisition will shift the balance of Rockwell Collins’ business to approximately 54 percent commercial and 46 percent government. 

“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.

ARINC Chairman and Chief Executive Officer John Belcher said Rockwell Collins’ expertise in managing information on-board the aircraft, coupled with Arinc’s innovative and reliable air to ground communications services, will be instrumental in providing new integrated information management solutions for customers.

The transaction is expected to close upon receipt of regulatory approvals and other customary conditions. It is expected to be EPS accretive once certain transaction and integration costs have been incurred.