BAE Systems purchases military GPS business from Collins Aerospace

Temporary signs with the new corporate name Collins Aerospace went up at company locations in November 2018 (Dave Franzman/KCRG)

CEDAR RAPIDS, iowa (KCRG) -- BAE Systems, based in the United Kingdom, has purchased Collins Aerospace's military GPS business.

BAE is paying $1.925 billion for this acquisition. The company says it plans to have a presence in the Cedar Rapids area. It also plans, as of now, to keep the 675 employees that work in the GPS business at Collins Aerospace.

"We will continue to manufacture the business’ GPS products at that site, until we transition to a new site in Cedar Rapids. We look forward to welcoming the employees from the UTC Military GPS business to the BAE Systems Team and are confident of a smooth transition,” Caitlin Hayden, Senior Vice President of BAE Systems Communications, said.

The U.S. Department of Justice asked Collins Aerospace in October to divest the military GPS business because of anti-trust concerns. This is a condition of United Technology Corporation's $135 billion merger with Raytheon.