Textron to Acquire Overwatch Systems |
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Textron Systems
201 Lowell St.
Wilmington, MA, 01887
USA
Press release date: October 25, 2006
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.
About Textron Systems
Textron Systems provides innovative technology solutions to meet the needs of the global aerospace and defense industries. The company supports military precision engagement and dominant maneuver with strike weapons, mobility and surveillance systems. The Textron name is well known in the areas of advanced weapons, surveillance systems, aircraft control components, specialty marine craft and armored vehicles. Textron Systems Corporation ("Textron Systems") is a wholly-owned subsidiary of Avco Corporation. Avco Corporation is wholly-owned subsidiary of Textron Inc. More information is available at www.systems.textron.com.
About Textron
Textron Inc. is a $10 billion multi-industry company operating in 33 countries with approximately 37,000 employees in continuing operations. The company leverages its global network of aircraft, industrial and finance businesses to provide customers with innovative solutions and services. Textron is known around the world for its powerful brands such as Bell Helicopter, Cessna Aircraft, Jacobsen, Kautex, Lycoming, E-Z-GO and Greenlee, among others. More information is available at www.textron.com
Media Contact: Karen Gordon Quintal 401-457-2362
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