RTX (NYSE: RTX) has agreed to sell its Raytheon’s cybersecurity, intelligence and services business to an undisclosed buyer for approximately $1.3 billion.
The company announced the move in its third-quarter earnings report published Tuesday.
Reuters reported that private equity firm Blackstone was the prospective purchaser of the business.
The Raytheon cyber business provides software modernization and offensive cyber services and performs special intelligence missions in support of U.S. intelligence community and defense agency customers.
At an earnings call on Tuesday, RTX Chairman and CEO Greg Hayes told analysts the company expects the planned divestment of Raytheon’s cybersecurity business, combined with the previously announced sale of Collins Aerospace’s actuation business, to generate gross proceeds of about $3 billion in 2024.
In July, French aerospace and defense company Safran agreed to buy Collins Aerospace’s aircraft actuation and flight control business for approximately $1.8 billion. The transaction is expected to close in the second quarter of 2024.
RTX, formerly Raytheon Technologies, operates with three business segments: Raytheon, Collins Aerospace and Pratt & Whitney.
The Arlington, Virginia-based defense contractor reported a 12 percent growth in Q3 organic sales on an adjusted basis and ended the third quarter with a record backlog of $190 billion.
