Lockheed to buy United Technologies Sikorsky business for $9 billion
Lockheed Martin Corp. announced on Monday a deal to buy United Technologies Corp.'s Sikorsky Aircraft business for $9 billion. Including a tax benefit, the present value of the deal is $7.1 billion. The companies expect the deal to close by late in the fourth quarter of this year, or early in the first quarter of 2016. Lockheed said the deal will have no impact on its plans to return cash to shareholders. United Technologies said its board has authorized the buyback of up to 75 million shares, which would be worth about $8.3 billion based on Friday's closing price. Separately, Lockheed Martin said it will conduct a review of its government information technology and technical services businesses, which employ more than 17,000 people. "As global security market dynamics shift, this review will strengthen our competitive posture, enabling sustained, profitable growth and positioning Lockheed Martin to deliver value for customers, shareholders and employees," said Lockheed Chief Executive Marillyn Hewson. United Technologies stock gained 1.1% in light premarket trade, while Lockheed shares were still inactive.
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