The much-talked-about and Rockwell Collins’ largest deal yet, the purchase of ARINC Inc for nearly $1.4 billion, will give them its fundamental data link communications connection to the FAA’s NextGen System.
ARINC is an industry-leading name in the field of aviation communications and this will increase Rockwell Collins’ immediate revenue potential by over 10%, with the commercial from 50% to 54% and next year’s military to 46%, which, it is said, is key for the company with declining military sales figures.
ARINC is most famously known as the pioneers of the ACARS messaging service and leads the way with their provision of air-ground digital VHF communications for airlines and business jets, flight support services, airport communications and the vMUSE platforms for passenger processing and the hugely successful self-check in operations.
Rockwell Collins hold more important ideas for the future with the increase in data link communications connectivity between cabins and flight decks with the ground, as the FAA’s NextGen plan will include the expansion of further data link communications; real-time weather information and re-routing plans and all-but replacing voice transmission.
“There is no doubt the digital information exchange will continue to expand at a rapid rate,” says Rockwell Collins CEO Kelly Ortberg, adding that the acquisition “substantially expands Rockwell Collins’ position in the growing aviation information-management space.”
The sale is expected to be finalized later this year, approximately 90 days after the acquisition announcement on August 11th.