Further bolstering its information assurance capabilities, Raytheon [RTN] yesterday said it has acquired the Government Solutions business from the data protection company SafeNet, Inc.
Terms of the deal were not disclosed although Raytheon said it will not materially affect its sales and earnings in the fourth quarter or in 2013. SafeNet’s Government Solutions business has 170 employees and does about $100 million in annual sales.
The Government Solutions business provides advanced, high-speed network encryption products to defense related customers that need to protect classified data. The products are used with satellite, networking, data link voice, key management, and wireless communications. Raytheon said the purchase gives it opportunities in the growing encryption market.
“This transaction, part of Raytheon’s strategic roadmap, provides and immediate insertion of proven strong technologies and talent into our business,” Daniel Crowley, president of Raytheon Network Centric Systems, said in a statement. “SafeNet’s government business offers industry-leading encryption technology that integrates vey well with Raytheon’s existing solutions, providing government and industry customers with the information assurance they need today and in the future.”
Raytheon has completed a number of acquisitions over the past several years in the cyber security area.
Government Solution’s general manager Jim Summers will continue to lead the business under Raytheon.
SafeNet, which does about $454 million in annual sales, is based in Maryland. The company said the sale will allow it to focus on data protection and rights management for enterprise customers. The company will still offer customers, including in the federal government, advanced encryption products.
SafeNet did not use a financial advisor on the deal. The company is a business partner with Raytheon.