Move Represents Significant Advancement in Core Defense Capabilities
(Providence, RI, October 25, 2006) -- In a move to extend core capabilities in its aerospace and defense business, Textron Inc. (NYSE: TXT) today announced that its Textron Systems unit has reached an agreement to acquire Overwatch Systems for a purchase price of approximately $325 million. Overwatch Systems is a leading developer and provider of intelligence analysis tools and communications products for the U.S. Department of Defense, the Department of Homeland Security, U.S. intelligence agencies and select foreign militaries.
"This acquisition is in perfect alignment with our strategy to add important capabilities to our current strong businesses, to further serve our government, military and homeland security customers," said Textron Chairman, President and CEO, Lewis B. Campbell. "In addition, it truly complements our current precision engagement strategy, adding critical new products to our intelligent battlefield offerings."
Headquartered in Morristown, New Jersey, Overwatch Systems develops and markets integrated systems that enable analysts to generate actionable intelligence faster and more effectively for the war fighter, first responder, analyst and policy maker. With approximately 385 employees in several major locations, Overwatch Systems is expected to generate approximately $105 million of revenue with strong margins, in 2006.
"As with the recent acquisition of Innovative Survivability Technologies (IST), Overwatch products and technologies clearly complement our existing portfolio," said Richard J. Millman, president of Textron Systems. "This addition of exceptional intelligence analysis capabilities will allow us to more fully address the emerging needs of our government and other customers in this dynamic wartime and global environment while also gaining some of the industry's top talent and their established and highly loyal customer base."
Millman added, "Due to high customer demand and the complementary nature of these products with our existing platforms, we expect this acquisition to result in annual revenues exceeding $300 million over the next five years."
The transaction is subject to normal regulatory approvals and is expected to close by the end of the year.