Announcement comes today from Rockwell Collins, Inc. [NYSE: COL] of its intent to acquire DataPath, Inc., a creator of satellite-based network communication solutions. DataPath, Inc., which has more than 600 employees around the world, designs, integrates, manages and deploys satellite communication (SATCOM) systems for military and commercial customers. Its SATCOM solutions include multi-band SATCOM terminals, network control software to manage and control communication networks, and global field support services.
“The acquisition of DataPath will broaden and strengthen our position in networked communications, an area of rapid growth for military customers around the world,” said Rockwell Collins Chairman, President and CEO Clay Jones. “DataPath’s strong customer relationships, expansive product line, and experience in developing satellite communication solutions make it an ideal fit for our communications portfolio.”
“I am very pleased that DataPath is becoming part of the Rockwell Collins family,” said DataPath CEO Tom Dyer. “The transaction provides our employees with new business opportunities, our shareholders with liquidity and our company with the resources necessary to continue to build on its position as a market leader in the development and delivery of world-class communication solutions to our customers.”
Pursuant to the terms of the agreement, Rockwell Collins will acquire all outstanding shares of DataPath, Inc. in a cash transaction worth approximately $130 million. Of that amount, approximately $110 million is associated with existing DataPath debt and other obligations. The transaction is expected to be completed in about 45 days and is subject to customary conditions to closing, including regulatory and other approvals. The acquisition is expected to be neutral to Rockwell Collins’ fiscal year 2009 earnings. SWE-DISH Satellite Systems AB, a Stockholm-based, designer and manufacturer of mobile satellite communications systems, is a wholly owned subsidiary of DataPath.
