Raytheon Buys Applied Signal for $490M

A pretty big merger in defense tech this morning. Waltham, MA-based Raytheon (NYSE: RTN) announced it has agreed to acquire Sunnyvale, CA-based Applied Signal Technology (NASDAQ: APSG) for $38 per share—about $490 million in cash. The deal is slated to close in the first quarter of 2011, and is not expected to have a material effect on Raytheon’s earnings.

Defense contractor Raytheon made the acquisition to complement its intelligence, surveillance, and reconnaissance technologies, said CEO and chairman William Swanson, in a statement.

Applied Signal, which makes communications, analytics software, and cyberwarfare technologies primarily for government agencies, will be integrated into Raytheon’s Space and Airborne Systems business unit. Advanced sensor systems will be a particular area of interest for the two companies as they move forward together.

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