General Dynamics make $825 million cash acquisition

General Dynamics has entered into an asset purchase agreement with Motorola to acquire Motorola’s Integrated Information Systems Group for $825 million in cash.

General Dynamics has entered into an asset purchase agreement with Motorola to acquire Motorola’s Integrated Information Systems Group for $825 million in cash and the assumption of certain liabilities and ongoing obligations.

The transaction, which is expected to close within 60 days, has been approved by the boards of directors of both companies and is subject to normal regulatory approval.

The business will become part of General Dynamics Information Systems and Technology group.

Motorola Integrated Information Systems Group, based in Arizona, provides defence and government customers with technologies, products and systems for secure communication, information assurance, situational awareness and integrated communication systems.

The unit has 3,000 employees and anticipates 2002 revenues of approximately $830 million.

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