On Wednesday, Raytheon announced that it has acquired the Government Solutions business of privately held data security company SafeNet. In a statement, Raytheon noted that:
The acquisition increases Raytheon's ability to provide the most advanced encryption capabilities needed by government customers to protect classified data.
Jim Summers, the general manager of SafeNet Government Solutions, will join Raytheon, and will continue to lead the organization within Raytheon's Network Centric Systems group (NCS).
Raytheon did not disclose financial terms of the deal, or provide details on SafeNet's annual revenues, earnings, or otherwise. The company did allow that the "transaction will not materially impact Raytheon's total company sales or earnings per share for the fourth quarter of 2012 or fiscal year 2013."
According to S&P Capital IQ, SafeNet's annual sales as of 2010, the last year for which details are available, came to more than $450 million . As such, they appear to constitute just 10% of the $4.5 billion in revenues generated within NCS, which itself accounted for just 18% of total Raytheon revenues in 2011.
Shares of Raytheon are down 0.8% on the news, at $57.69.
The article Raytheon Acquires Data Encryption Company originally appeared on Fool.com.
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