Finmeccanica Completes DRS Acquisition

Italy's aerospace and defense giant said Wednesday it had completed its acquisition of U.S. military contractor DRS Technologies in a $5.2 billion deal.

ROME (AP) -- Finmeccanica SpA, Italy's aerospace and defense giant, said Wednesday it had completed its acquisition of U.S. military contractor DRS Technologies Inc. in a US$5.2 billion deal.

The acquisition received all the required regulatory approvals as well as the go-ahead by DRS shareholders, Finmeccanica said an a statement. Under the deal, the Italian company purchased all DRS shares for US$81 each in cash and took on approximately US$1.6 billion in debt.

DRS will operate as a U.S. subsidiary of Finmeccanica under agreements with the Defense Department.

Rome-based Finmeccanica is seeking to boost its international role as a key supplier of defense and security systems, while DRS hopes the new company will be able to bid for large-scale projects in the U.S. and abroad.

"The acquisition of DRS further solidifies our position as a top-tier international competitor and reinforces our commitment to the U.S. market, industrial base and, most importantly, the American armed forces," said Finmeccanica chairman and chief executive Pier Francesco Guarguaglini.

DRS, based in Parsippany, N.J., makes electronic gear for the U.S. military and intelligence agencies, including thermal-imaging devices, combat-display workstations, power systems, and air-combat-training systems.

"Finmeccanica's investment in DRS will allow the company to increase new business opportunities globally and accelerate growth while strengthening our presence in the U.S.," said Mark S. Newman, chairman and CEO of DRS.

Finmeccanica employs more than 60,000 people worldwide, not including DRS, and focuses on designing and manufacturing helicopters, civil and military aircraft, satellites, space infrastructure, missiles and defense electronics.

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