Defence

ITT to buy EDO in $1.7bn US defence industry deal

By Graham Warwick

US engineering company ITT is to acquire defence supplier EDO in a cash deal that values EDO at $1.7 billion. EDO produces electronic-warfare systems, weapon launchers, antennas and composite structures.

The acquisition will grow ITT's defence electronics business and expand its reach into adjacent markets, says president and chief executive Steve Loranger.

EDO's revenues are expected to grow approximately 60% in 2007 to $1.15 billion. ITT had 2006 revenues of $7.8 billion, almost 50% of when were from defence electronics.

                                                                                                                             © US Air Force

New York-based EDO's products include the vertical-ejection weapon launchers on the Lockheed Martin F-22 and F-35 stealth fighters, and the "talk-while-jam" interference cancellation system on the Boeing EA-18G.

ITT's products range from night-vision to electronic-warfare systems and the company was recently selected to build and operate the US Federal Aviation Administration's ADS-B network.