Biggest travel technology deal of the year so far (and second only to Priceline's acquisition of Kayak in recent years) - Rockwell Collins is buying ARINC for $1.39 billion.
Marrying The Carlyle Group-owned air communications and engineering provider with Iowa-based Rockwell creates one of the largest provides aviation and airline IT in the world.
The acquisition will blend ARINC’s networks and services with avionics and cabin technologies developed by Rockwell Collins, the pair say in the announcement made today.
Kelly Ortberg, CEO and president of Rockwell Collins says:
"Strategically, this acquisition is a natural fit for Rockwell Collins. It accelerates our strategy to develop comprehensive information management solutions by building on our existing information-enabled products and systems and ARINC's ground–based networks and services to further expand our opportunities beyond the aircraft."
ARINC's 2013 revenue is expected to be over $600 million. The company offers its service for the entire aviation ecosystem, including pilots, MRO, passengers, regulators, security, and airport operations.
Post-acquisition, Rockwell Collins's business will be 54% commercial and 46% government-related.
John Belcher, chairman and CEO of ARINC, says:
"Rockwell Collins’ expertise in managing information on-board the aircraft, coupled with our innovative and reliable air to ground communications services, will be instrumental in providing new integrated information management solutions for our customers."
Reports elsewhere in July had put forward a string of likely suitors for the ARINC business, including Rockwell as well as the likes of Honeywell and Amadeus.