GD to Acquire Motorola Unit for $825 Million

General Dynamics Corp. is set to purchase Motorola Inc.'s Integrated Information Systems Group for $825 million in cash and assumption of certain liabilities and ongoing obligations, General Dynamics announced Aug. 6.

The transaction has been approved by the boards of directors of both companies, subject to normal regulatory approval, and is expected to close within 60 days. The Motorola unit will become part of General Dynamics' Information Systems and Technology group.

Motorola of Schaumberg, Ill., provides integrated communications solutions and embedded electronic solutions to customers worldwide.

The Integrated Information Systems Group, based in Scottsdale, Ariz., provides defense and government customers with technologies, products and systems for secure communication, information assurance, situational awareness and integrated communications systems. The unit has 3,000 employees, with projected 2002 revenues of about $830 million.

The acquisition strengthens General Dynamics position in communications and information technology for military and government customers. It also broadens capabilities in command, control, communication, computers, intelligence, surveillance and reconnaissance systems, said Nicholas Chabraja, chairman and chief executive officer of General Dynamics, Falls Church, Va.

"In addition, there is real synergy with other elements within our Information Systems and Technology group," he said. "This is a business we know, and we believe it will achieve its full potential as part of General Dynamics."

Mark Fried, corporate vice president and general manager of the Motorola group, will remain president of the unit after the transaction is complete.

As part of the deal, Motorola and General Dynamics have executed a series of agreements that will give government customers continued access to applicable Motorola commercial technologies.

Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here


  • VIDEO: Explore the 2019 M&A Trends

    Editor Nick Wakeman interviews Kevin DeSanto of the investment bank KippsDeSanto about the highlights of their annual M&A survey and trends driving acquisitions in the federal space. Read More


    In our latest Project 38 Podcast, editor Nick Wakeman and senior staff writer Ross Wilkers discuss the major news events so far in 2019 and what major trends are on the horizon. Read More

contracts DB

Washington Technology Daily

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.