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June 10, 2019 | Information, Aerospace, Naval, Land, C4ISR, Security, Other Defence

Raytheon Technologies Corporation: UTC, Raytheon make marriage official

Updated with comments from officials on June 10, 2019, at 9:21 a.m. ET.

WASHINGTON — Raytheon and United Technologies Corporation will officially merge into a new entity called Raytheon Technologies Corporation, with the deal taking place in first half of 2020.

Following Saturday reports that a merger was imminent, the two firms made the news official Sunday, launching a website about the planned all-stock deal. On Monday, Raytheon CEO Thomas Kennedy and UTC CEO Greg Hayes held a conference call, where the two revealed that discussions about a potential merger started in summer 2018, before taking off in earnest this January.

“It's like a mirror,” Kennedy said of UTC, noting both companies invest heavily in new technologies while remaining “platform agnostic.” Hayes added that there is roughly a one percent overlap between the two firms portfolios.

The new company will be roughly 50-50 defense and commercial, with plans to spend $8 billion on R&D after combining. Much of that funding will go towards high-end defense programs, including, per a news release, “hypersonics and future missile systems; directed energy weapons; intelligence, surveillance, and reconnaissance (ISR) in contested environments; cyber protection for connected aircraft; next generation connected airspace; and advanced analytics and artificial intelligence for commercial aviation.”

The new firm has a “tremendous opportunity to invest” in the future, Hayes said. “The resources of the combined company will allow us to do things on a stand alone basis that would have been very difficult” individually.

Hayes also expressed his belief the Pentagon would not see major issues, given the limited overlap. However, other trouble may be brewing; during a Monday interview with CNBC, U.S. President Donald Trump expressed concern about the agreement.

While being billed as a “merger of equals,” UTC shareowners will own approximately 57 percent and Raytheon shareowners will own approximately 43 percent of the combined company.

A spokesperson for Raytheon confirmed to Defense News Sunday that the combined company will be based in the greater Boston area. Raytheon is based in the Boston suburb of Waltham, while UTC is based in Farmington, Conn.

Per a news release, the new company will have approximately $74 billion in pro forma 2019 sales. The release also highlights that the merged company will be a major player in both the defense and commercial aerospace markets, giving greater market resiliency.

Byron Callan, a defense analyst with Capital Alpha Partners, wrote Sunday in a note to investors that the merger may be a sign of market trends to come.

“An RTN-UTX deal may be a signal (a siren?) that 1) this U.S. defense cycle is peaking, and firms need to start repositioning for growth in 2021 and beyond; 2) Maybe the commercial aerospace outlook is looking wobbly too and Western firms need to hedge against fallout from a U.S.-China trade split. A U.S. recession is overdue; 3) Defense firms will need to fund more of their own R&D in the future so joining a larger firm will limit margin pressure which could be evidenced in the 2020s,” Callan wrote.

Callan also sees “some overlap in the defense portfolios” for the two companies, primarily through the Mission Systems segment of Collins Aerospace. That could require some small divestitures down the road as the deal is finalized, but there do not appear to be any major issues that would lead to objections from the Pentagon.

“Both are active in defense communications, though Collins has a larger share. Both have imaging/IR products, though Raytheon has a larger product offering,” he wrote. “Collins provides large space imaging mirrors used in surveillance satellites but it's not clear to us if there is an overlap with Raytheon's classified space payload work.”

The deal should create a mammoth defense contractor second only to Lockheed Martin. Raytheon already ranked number two on the most recent Defense News Top 100 list, with $23.5 billion in defense revenues, 93 percent of its overall revenue total; UTC has $7.83 billion in defense revenues, a mere 13 percent of its overall figures.

However, that UTC number came before its acquisition of Rockwell Collins and its $2.28 billion in defense revenues, which will naturally increase United's overall number.

The move comes after 18 months of major defense consolidation. In addition to UTC's move on Rockwell, there was the General Dynamics acquisition of CSRA, Northrop Grumman's acquisition of Orbital ATK, and L3 and Harris announcing in Oct. 2018 that they would combine to form what at the time appeared to be the seventh largest global defense firm.

https://www.defensenews.com/industry/2019/06/09/raytheon-technologies-corporation-utc-raytheon-make-marriage-official/

On the same subject

  • Uncle Sam Wants YOU To Compete For Army Network Upgrade: CS 21

    August 28, 2019 | Information, Land

    Uncle Sam Wants YOU To Compete For Army Network Upgrade: CS 21

    By SYDNEY J. FREEDBERG JR. TECHNET AUGUSTA: No incumbent contractor should feel safe, and all comers should consider taking a shot, Army network modernization officials told me here. Even for its upgrade coming in the next few months– Capability Set 2021, aimed at infantry brigades — the service is still thrashing out which technologies to include, let alone who gets paid to build them. Subsequent biennial upgrades — Capability Set 23, CS 25, CS 27, and beyond — are even more in flux, by design, to leave room to add the latest tech. In fact, even an upgrade already being fielded to specialized communications units, the Expeditionary Signal Battalion – Enhanced (ESB-E) kit, is open to change. On the flipside, if the Army decides your product isn't ready for the upcoming upgrade cycle, or it just doesn't fit the available budget, you should still aim for the next upgrade, or the one after that. And you should take that shot ASAP, because the early work on those later upgrades has already begun. Gone are the days of a stately, deliberate, laborious acquisition process in which the Army would plan out the future in detail before going to industry. “We'd almost always guess wrong,” said Maj. Gen. David Bassett, the Program Executive Officer for Command , Control, & Communications – Tactical (PEO C3T). “Eventually we'd deliver yesterday's technology tomorrow.” That said, Bassett doesn't want to overcorrect by delivering tomorrow's technology today, before it's ready for the harsh conditions and high demands of erecting a wide-area wireless network in a war zone. “I know y'all won't believe this, but some of the things that vendors show me as mature, it turns out they're not,” Bassett snarked at the TechNet Augusta conference last week. “What we're not doing is holding up a Capability Set for any given technology. If it's ready, bring it to us. ... If it's not ready yet, look to a future Capability Set.” For any given product, he said, “we need you to help us understand ... whether you see that as something that's part of the network of '23, part of the network of '25, or whether it's something we really ought to be trying to add in to the network of '21 at the last minute.” Bassett has held industry “outreach sessions” recently in Nashville and Baltimore, with another this November in Austin. These are forums for the Army to solicit white paper proposals to solve specific problems and then award small demonstration contracts using Other Transaction Authority (OTA). Larger-scale procurement for Capability Set 21 should start in April, Bassett said. “The contracts, the logistics, the testing,” he said, “we're in the midst of that right now, so we can buy the network in '20, we can integrate and test it next summer, and we can deliver to brigades in '21.” Competition, Accelerated To test new network concepts and designs as fast as possible, the Army is using a lot of “stand-in” technology — that is, whatever is available, from existing contracts or inventory, that works well enough to run the test. But those stand-ins aren't necessarily, or even probably, the final products the Army plans to use, and their manufacturers don't have any incumbent advantage over other contenders. “Believe us when we say that we're not vendor locked and that we're going to open this up for a competitive environment in FY 20, after we decide what the final network architecture needs to be,” said Col. Garth Winterle, who works for Bassett as project manager for tactical radios. So the Army has two main messages for industry about Capability Set 2021, Winterle told me. “Be prepared for competitive procurement in FY 20,” he said, “[and] be open to providing information, including some stuff they may not share typically, like potential price points.” It's not just stand-in systems that are subject to competition and change, Winterle continued. It's also formal Programs Of Record with incumbent vendors, established contracts, and painstakingly negotiated budget lines. Even today, “all of my radio contracts are multi-vendor,” Winterle told me. That means one vendor on the contract may win the first lot of radios, but a different vendor may win the second — or the Army may bring in a new vendor that wasn't even in the initial award, all without having to redo the POR. “All Programs of Record are being compared to potential commercial systems as part of the experimentation, so if elements of [the existing] WIN-T architecture come up against new commercial that are more affordable or more affective...they have to participate in a run off,” Winterle said. “Gen. Bassett's been clear: There're no sacred cows.” Yes, large chunks of the current Warfighter Information Network – Tactical will remain in Army service for years to come, despite former Army Chief of Staff Mark Milley calling WIN-T inadequate for highly mobile high-tech war and truncating the program back in 2017. For all the Army's urgency about advancing, the service is just huge, so on any plausible budget it will take a decade to overhaul everything. The Army's target date for total modernization is 2028. But key pieces of WIN-T will be replaced much sooner, and some select units will be rid of it entirely in the near term. First up is the 50th Expeditionary Signal Battalion at Fort Bragg, which deploys teams worldwide to keep frontline units connected. The 50th ESB started turning in all its WIN-T kit this past October. Not only are all three companies within the battalion now using a new kit called ESB-Enhanced: Each company got a different version of the new equipment, which it field-tested, modified, and tested again. A council of generals approved proposed changes “at least every month,” said Col. Mark Parker, until recently the Army's capability manager for networks & services. Now, after about a dozen revisions in less than 12 months, the Army has a radically new ESB-E. That means not just new kit, but new personnel, training, organization — even a reorganized motor pool. The streamlined formation needs 18 percent fewer soldiers and half as many vehicles. It can deploy on commercial aircraft instead of heavy-duty Air Force transport — the basic network kit actually fits in the overhead bin — but it can provide communications to 60 percent more command posts. (48, up from 30). The final ESB-E design is due before the new Army Chief of Staff, Gen. James McConville, in October — a year after the first new kit was fielded — so he can decide whether to reorganize the other Expeditionary Signal Battalions across the Army on the new model. “Not all ESB-Es are going to look alike,” however, Parker told the conference. A battalion supporting the 18th Airborne Corps (as the 50th ESB-E does at Fort Bragg) might need parachute-qualified communications techs, while one supporting fast-moving armored divisions might need different ground vehicles to keep up. The Army also keeps hoping to add new technology to each ESB-E as it becomes available, Bassett told the conference. To 2028 & Beyond The way Army upgraded the Expeditionary Signal Battalion – Enhanced is preview of what it hopes to do across the force, Bassett said. That means streamlining or bypassing the traditional requirements process, and using existing contracts and authorities to get new tech to the troops fast — and then get their feedback to make it better in the next round. “We're a little late” with Capability Set 21, Bassett said frankly, because Congress didn't approve an Army request to reprogram already-appropriated funds to speed field-testing. But the Army was able to put the entire brigade architecture together in the laboratory — using stand-ins for the final product — and test it “end to end,” Winterle told me. That means sending realistic loads of both voice and data, based on real-world mission requirements, from tactical radios to satellite communications to US-based server farms. The next big step is to take the hardware into the field, with a full brigade of the 82nd Airborne Division to be field tested next year. While Bassett and his procurement professionals focus on Capability Set 21, the Army-wide Cross Functional Team for network modernization is already working on CS 23. While '21 is optimized for infantry units, '23 will take on medium-weight brigades of 8×8 armored Strykers and heavy brigades of M1 tanks and M2 Bradleys. These vehicles can carry a lot more hardware than infantry on foot, so they can field more powerful transmitters and larger antennas. But they'll really need that added power, because they can cover much more ground in a day and need to transmit signals over longer distances, without revealing their location to eavesdropping enemy electronic warfare units. By Capability Set '25, if not before, “we should be able to have constant communications where you can come up or drop off as required, depending on threat,” said the CFT's unified network lead, Col. Curtis Nowak. This ability to connect, get essential data, and then go dark to avoid detection is central to the Army's emerging concept of high-tech warfare, what's called Multi-Domain Operations. The Army's goal is to modernize the entire force to wage multi-domain operations by 2028. That's why the Army has already scheduled successive network upgrades in '21, '23, '25, and '27. But that's not the end, officials have made clear. “The reality is there will be a Capability Set '29,” Nowak told me. “We're no longer going to have a finish line.” https://breakingdefense.com/2019/08/uncle-sam-wants-you-to-compete-for-army-network-upgrade-cs-21/

  • Nous avons besoin de vous | Aéro Montréal lance une campagne de communication inédite pour attirer et retenir les talents dans l’industrie aérospatiale québécoise

    April 24, 2022 | Information, Aerospace, Naval, Land, C4ISR, Security

    Nous avons besoin de vous | Aéro Montréal lance une campagne de communication inédite pour attirer et retenir les talents dans l’industrie aérospatiale québécoise

    NOUS AVONS BESOIN DE VOUS ! Aéro Montréal lance une campagne de communication inédite pour attirer et retenir les talents dans l'industrie aérospatiale québécoise Chers membres, chers partenaires, L'exercice de planification stratégique d'Aéro Montréal et les nombreux entretiens menés avec l'industrie ont fait ressortir deux attentes majeures de la part de l'industrie aérospatiale québécoise : améliorer la visibilité de l'industrie et trouver des solutions pour attirer et retenir la main-d'œuvre. À l'heure où l'industrie connaît un regain d'activité, le conseil d'administration d'Aéro Montréal n'a pas tardé à se mobiliser pour répondre à ces besoins identifiés par les entreprises. Ses membres ont donné le ton en appuyant financièrement le déploiement d'une campagne de communication massive dont l'objectif sera d'assurer la visibilité du secteur, de stimuler l'attraction de talents et de soutenir la rétention de la main-d'œuvre. Vous avez un rôle à jouer Nous lançons un appel pour engager la contribution de chaque membre de la grappe aérospatiale du Québec : c'est gr'ce à votre soutien financier que nous ferons de cette campagne un succès. Aéro Montréal mandatera une agence pour coordonner une campagne de communication. Aéro Montréal sera garant de représenter la pluralité des pans de l'industrie et s'assurera de véhiculer des messages communs qui répondent aux objectifs des maitres-d'œuvre, équipementiers, sous-traitants et fournisseurs. Toutefois, le succès d'une telle opération ne saurait être garanti sans un investissement de l'ensemble des parties prenantes. Participez à cet élan collectif : nous devons remplir nos programmes de formations en aérospatiale, nous devons nous assurer de maintenir et d'accroître la richesse du bassin d'employés qualifiés disponible au Québec. En offrant de la visibilité au secteur, nous nous assurons de poser les premières fondations qui nous permettront d'y arriver. Chaque entreprise de la grappe est invitée à contribuer financièrement et ainsi soutenir ce projet qui servira l'intérêt collectif. Toutes les contributions comptent ! Ils ont d'ores et déjà dit OUI Ces premières entreprises se sont engagées aux côtés d'Aéro Montréal pour permettre à cette campagne de visibilité de voir le jour. Joignez-vous à elles! Comment contribuer ? Ce projet compte sur la mobilisation de tous les membres de la grappe. Les confirmations d'engagement sont attendues avant le vendredi 6 mai 2022 et l'équipe d'Aéro Montréal met tout en œuvre pour vous proposer des termes de paiement flexibles et échelonnés selon vos besoins. Si vous souhaitez contribuer ou en apprendre davantage sur le projet, vous vous invitons à contacter Léa Guicheteau, Directrice pilier Image et aérospatiale durable (lea.guicheteau@aeromontreal.ca ; 514-550-7494). 380, rue Saint-Antoine Ouest Bureau 3120 Montréal, QC, H2Y 3X7 Téléphone : (514) 987-9330 ENVOYER À UN AMI SITE WEB

  • Innovation for Defence Excellence and Security (IDEaS)

    December 5, 2017 | Information, Aerospace, Naval, Land, C4ISR, Security

    Innovation for Defence Excellence and Security (IDEaS)

    A New Approach to Innovation for Defence and Security The Innovation for Defence Excellence and Security (IDEaS) program will support research to help solve Canada's challenges in defence and security. IDEaS will: provide financial support to innovators and researchers to perform research, generate knowledge or solve problems to address defence and security challenges that DND and security partners will identify; support research and development (R&D) networks to address such challenges; and support innovation from problem definition to early adoption of the solution. How is IDEaS different? The IDEaS Program will introduce new approaches by: facilitating partnership opportunities between innovators, industry and other defence and security stakeholders; providing ongoing calls for innovation to highlight emerging requirements and opportunities for innovators to engage in defence and security challenges; supporting projects to allow for development of promising ideas; acquiring limited pre-production quantities of innovations to be evaluated in operational settings; and using a web portal to broadcast defence and security challenges to recruit appropriate S&T expertise across academia, industry, government and other partners. Why is IDEAS necessary? Innovative technology, knowledge, and problem solving are critical for Canada and its allies to mitigate new threats, stay ahead of potential adversaries, and meet evolving defence and security needs. In this environment, Canada's defence and security stakeholders need a fundamentally new approach to innovation to allow them to better tap into the extraordinary talent and ingenuity resident across the country. The IDEaS program will launch a number of coordinated new initiatives that will transform the way we generate solutions to complex problems. Launch of the IDEaS Program is expected in Fall 2017. More details about the program will be forthcoming. https://www.canada.ca/en/department-national-defence/programs/defence-ideas.html

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