Raytheon has completed its merger with Hughes Aircraft, creating the USA's third- largest defence-aerospace company, with combined annual sales of more than $20 billion. Raytheon paid $9.5 billion for Hughes - $5.46 billion in stock and $4.04 billion in assumed debt.
The company has formed Raytheon Systems to combine the operations of Hughes with those of Raytheon Electronic Systems, Raytheon E-Systems and Raytheon TI Systems. The unit has combined sales of $14.5 billion. Raytheon Electronic Systems general manager William Swanson has been appointed chairman of the new group, with former Hughes senior vice-president Ken Dahlberg as president.
Raytheon Systems will be divided into five business segments: Defense Systems (missiles), Sensors and Electronic Systems, C3 Systems (command, control and communications), Intelligence, Information and Aircraft Integration Systems, and Training and Services. Raytheon expects to see "double-digit" growth in its commercial electronics business, particularly air-traffic control.