Defense Business Briefing -- June 11, 2019

June 11, 2019 at 10:00 AM

Welcome to today's Defense Business Briefing, your weekly roundup of the latest defense industry news.

This week's top story

Raytheon, United Technologies to merge in all-stock deal

Raytheon and United Technologies announced they have agreed to combine in an all-stock "merger of equals" to create a new company dubbed Raytheon Technologies.

News & notes

AeroVironment acquires VTOL UAS company Pulse Aerospace

AeroVironment said it has paid $25.7 million to acquire Pulse Aerospace, which develops small vertical takeoff and landing unmanned aircraft systems.

Defense contractors rethink hiring, retention as job market challenges rise

Many defense contractors, particularly those in the services industry, say they're intensely focused on their hiring practices and benefits as the market for the workers they need tightens.

Raytheon CEO says he approached UTC CEO about deal about a year ago

Tom Kennedy, the chief executive of Raytheon, first approached Greg Hayes, the CEO of United Technologies, about the possibility of a merger in 2018.

Trump wonders whether Raytheon-UTC merger takes away competition

President Trump questioned whether the recently announced merger of Raytheon and United Technologies would reduce competition in the defense industry.

Lawmakers call on DOD IG to open new investigation into TransDigm

Members of the House Oversight and Reform Committee are seeking a "comprehensive" investigation into TransDigm, even after the company last month agreed to refund $16.1 million the Defense Department inspector general previously deemed excess profit.

L3 CEO: Merger deal with Harris still awaiting approval from EU, Turkey and DOJ

The planned merger between Harris and L3 Technologies still requires approvals from the European Union, Turkey and the Justice Department, according to Chris Kubasik, L3's chief executive.

Mercury Systems consolidating West Coast facilities into expanded manufacturing facility

Mercury Systems, which continues to rapidly acquire new companies, is consolidating multiple West Coast facilities gained through acquisitions into an expanded manufacturing facility, according to its chief executive.

SAIC reports improved sales, profit

Science Applications International Corp. said sales in its most recent quarter reached $1.6 billion, up 37% from the same three-month period a year earlier.

Appointments & promotions

AIA hires Stone

The Aerospace Industries Association said it has named Benjamin Stone vice president of membership and strategic development, leading AIA's membership and business development activity and overseeing its Supplier Management council.

What's happening

The week ahead

The House Armed Services Committee will hold the marathon mark-up of its fiscal year 2020 defense authorization bill this week.

For Inside Defense subscribers

Trump administration seeks to delay ban on contracting with companies using Chinese telecom

The Trump administration is asking Congress to pass new legislation delaying implementation of a ban on the government sending federal dollars to companies and organizations that use certain Chinese telecommunications equipment and services.

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