Tyco sells M/A-COM for $425m

Tyco Electronics has entered into an agreement to sell M/A-COM, its radio frequency components and subsystem business to Cobham Defense Electronic Systems, a subsidiary of Cobham, for $425m in cash.

The transaction is subject to customary regulatory approvals and is expected to close by the end of the calendar year.

A&D, which employs around 1,000 people based principally in California and Massachusetts, designs and manufactures advanced radio frequency (RF) and microwave subsystems and components.

Its products include a range of aerospace and defence, space, force protection and homeland security solutions that are currently used on platforms including the F-35, the Advanced Medium-Range Air-to-Air Missile (AMRAAM), and Maritime Multi-role Aircraft (MMA).

It is anticipated that in 2008 the aerospace and defence (A&D) business of M/A-COM will be just under 40 per cent of its total revenue. For the year ended 30 September 2007, M/A-COM generated total operating profits of $37.9m and EBITDA of $62.9m on revenue of $477.7m. In September 2007, M/A-COM’s gross assets were approximately $287.6m.