Orbital Sciences Corporation announced today that it has reached an agreement to purchase the Transportation Management Solutions (TMS) business of Raytheon Company for a cash price of approximately $21 million, subject to adjustment. Raytheon’s TMS unit produces satellite-aided automatic vehicle location (AVL) systems for public transit fleets that are complementary to the line of OrbTrac AVL systems supplied by Orbital’s Intelligent Transportation Systems (ITS) Division. The TMS unit also supplies fleet management software for utilities and other companies, which represents a new product line for Orbital.
Raytheon employs approximately 75 people in its TMS business at facilities in Linthicum, Maryland and State College, Pennsylvania, all of whom are expected to join Orbital as a result of the purchase.
Mr. Robert D. Strain, Orbital’s Executive Vice President and General Manager of its Electronics and Sensor Systems Group, said, “Over the past several years, our ITS Division has won important AVL contracts with a number of local and regional public transportation agencies, producing consistent revenue growth during that period. By acquiring Raytheon’s TMS business, our ITS business will become an even more significant contributor to Orbital’s future growth.”
Orbital’s ITS Division develops, builds and supports highly capable systems that use satellite and terrestrial communications and positioning technologies to enable local area transportation authorities to better manage fleets of service vehicles and mass transit bus and rail systems to improve service for their constituents.
The transaction is subject to various closing conditions, including the U.S. Government’s Hart-Scott-Rodino regulations, and is expected to be finalized in late December.
About Raytheon
Raytheon Company, based in Lexington, Massachusetts, is a global technology leader that provides products and services in the areas of commercial and defense electronics, engineering and construction, and business and special mission aircraft. Raytheon has operations throughout the United States and serves customers in more than 80 countries around the world.
About Orbital
Orbital is one of the largest space and information systems companies in the world, with 1998 revenues of approximately $750 million. The company, which is headquartered in Dulles, Virginia, employs 4,200 people at its major facilities in nine states and several international locations. Orbital is the world’s leading manufacturer of low-cost space systems and products, including satellites, launch vehicles, electronics and sensors, satellite ground systems and software, and satellite-based navigation and
communications products. Through its ORBCOMM and ORBIMAGE affiliates, Orbital is also a pioneering operator of satellite networks that provide data communications and high- resolution imagery services to customers all around the world.
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