United Technologies announced late Sunday it has agreed to buy Rockwell Collins in a $30 billion deal.
The acquisition would give United Technologies annual sales of about $67 billion to $68 billion.
Rockwell Collins specializes in avionics, flight controls, aircraft interior and data connectivity and has both commercial and military customers. United Technologies said Rockwell Collins' 2017 sales are expected to exceed $8 billion.
Under the agreement, each Rockwell Collins shareholder will receive $93.33 per share in cash and $46.67 in shares of UTC common stock, totaling a purchase price of $140 per share.
The deal is expected to close by the third quarter of next year. Rockwell Collins would be integrated with UTC Aerospace Systems, creating a new business unit called Collins Aerospace Systems. Kelly Ortberg, Rockwell Collins' chief executive, would become CEO of the business.