Raytheon and United Technologies to merge

WALTHAM, Mass. and FARMINGTON, Conn. Military defense prime contractor Raytheon and United Technologies have entered into an agreement to combine in an all-stock merger of equals; following the completion of the transaction, the company will be known as Raytheon Technologies.

According to information from Raytheon, the combined company -- which will be headquartered in the greater Boston metro area -- will log $74 billion in pro forma 2019 sales. The merger is expected to close sometime during the first half of 2020, following United Technologies' completion of its previously announced separation of its Otis and Carrier businesses.

Tom Kennedy, Raytheon chairman and CEO, said of the merger: "Today is an exciting and transformational day for our companies, and one that brings with it tremendous opportunity for our future success. Raytheon Technologies will continue a legacy of innovation with an expanded aerospace and defense portfolio supported by the world's most dedicated workforce. With our enhanced capabilities, we will deliver value to our customers by anticipating and addressing their most complex challenges, while delivering significant value to shareowners."

Raytheon is well-known for their military missile defense and radar systems such as the Global Patriot, pictured.

Patriot is a long-range, high altitude, all-weather solution that has been tested more than 2,500 times with U.S. Army oversight under real-world conditions. Photo courtesy of Raytheon.

Greg Hayes, United Technologies chairman and CEO, said, "The combination of United Technologies and Raytheon will define the future of aerospace and defense. Our two companies have iconic brands that share a long history of innovation, customer focus, and proven execution. By joining forces, we will have unsurpassed technology and expanded R&D capabilities that will allow us to invest through business cycles and address our customers' highest priorities. Merging our portfolios will also deliver cost and revenue synergies that will create long-term value for our customers and shareowners."

Tom Kennedy will be appointed executive chairman, while Greg Hayes will be named CEO of Raytheon Technologies; it is expected that two years following the close of the transaction, Hayes will assume the role of chairman and CEO.