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Honeywell to Acquire CAES for ...

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Honeywell to Acquire CAES for $1.9 Billion, Expanding Defense Capabilities

Honeywell Acquire CAES Expanding Defense Capabilities
The Silicon Review
21 June, 2024

The acquisition is expected to enhance Honeywell’s offerings across space, land, sea, and air, particularly with new electromagnetic defense solutions

In a significant move to bolster its defense technology portfolio, U.S. manufacturing giant Honeywell announced on June 20 its plans to acquire defense electronics maker Cobham Advanced Electronic Solutions (CAES) for $1.9 billion in an all-cash deal. This acquisition aims to enhance Honeywell's military hardware capabilities across various domains, including space.

CAES, based in Arlington, Virginia, is currently owned by private equity firm Advent International, which acquired it from British defense and aerospace contractor Cobham for approximately $5 billion in 2020. Notably, the deal does not include Cobham Satcom, which specializes in ground-based terminals for satellite communications and was sold to a separate private equity firm two years ago. Honeywell sees significant potential in integrating CAES's advanced radio frequency (RF) technology into its existing defense systems. The acquisition is expected to enhance Honeywell’s offerings across space, land, sea, and air, particularly with new electromagnetic defense solutions for comprehensive RF signal management. The deal, which includes 2,200 employees and 13 facilities across North America, is pending regulatory approvals anticipated to be obtained by the end of the year.

Honeywell, a key player in multiple markets such as aviation and energy, reported revenues of $36.7 billion in 2023. The company is actively engaged in developing satellite laser communications terminals for the Pentagon’s Space Development Agency. Earlier this year, Honeywell announced the acquisition of Civitanavi Systems for $200 million and recently completed a $5 billion purchase of Carrier Global’s digital security solutions business, underscoring its aggressive expansion strategy in the defense and technology sectors.

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