[transport-communications] Orbital Purchase of Raytheon's Transportation Mgmt. Solutions Business Unit
- Orbital Completes Purchase of Raytheon's Transportation Management Solutions
Acquisition Positions Company as Market Leader in Satellite-Based
Vehicle Location Systems
DULLES, Va., Jan. 4 -- Orbital Sciences Corporation (NYSE: ORB) announced
today that it completed the purchase of Raytheon Company's Transportation
Management Solutions business unit on December 31, 1998 for a cash price of
approximately $21 million. Orbital will combine the former Raytheon
organization with its own Intelligent Transportation Systems (ITS) Division to
form an expanded unit that will be called Orbital's Transportation Management
Systems (TMS) Division.
As a result of the purchase, Orbital's TMS Division will be the country's
leading supplier of automatic vehicle location (AVL) systems that use
satellite and terrestrial communications and positioning technologies to
enable local area transportation authorities to better manage mass transit bus
and rail systems, as well as fleets of highway maintenance vehicles. Orbital
will also gain a new product line of fleet management software for utilities
and other companies.
"The transportation management systems that were produced by Raytheon are
complementary to those marketed by our ITS Division," said Mr. Robert D.
Strain, Orbital's Executive Vice President and General Manager of its
Electronics and Sensor Systems Group. "Orbital will now offer the industry's
most advanced and cost-effective transportation management solutions at a time
when these systems are becoming indispensable to operators of public transit
systems and vehicle fleets."
The Raytheon division employed approximately 75 people at facilities in
Linthicum, Maryland and State College, Pennsylvania, all of whom are expected
to join Orbital as a result of the purchase, expanding Orbital's TMS work
force to more than 200 people.
Mr. David L. Mathison, who served as General Manager of the Raytheon division,
said, "The prospect of combining the capabilities of the two divisions within
Orbital's space technology business operations is extremely exciting to
Raytheon Company, based in Lexington, Massachusetts, is a global technology
leader that provides products and services in the areas of commercial and
defense electronics, engineering and construction, and business and special
mission aircraft. Raytheon has operations throughout the United States and
serves customers in more than 80 countries around the world.
Orbital is one of the largest space and information systems companies in the
world, with 1998 revenues of approximately $750 million. The company, which
is headquartered in Dulles, Virginia, employs 4,500 people at it major
facilities in nine states and several international locations. Orbital is the
world's leading manufacturer of low-cost space systems and products, including
satellites, launch vehicles, electronics and sensors, satellite ground systems
and software, and satellite-based navigation and communication products.
Through its ORBCOMM and ORBIMAGE affiliates, Orbital is also a pioneering
operator of satellite networks that provide data communications and high-
resolution imagery services to customers all around the world.
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