Raytheon Co. In $2.3 Billion Cybersecurity Joint Venture

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Raytheon Co.
RTN
agreed to contribute $1.57 billion to form a joint-venture computer security company with Websense, owned by Vista Equity Partners. Raytheon will own an 80.3 stake in the venture, while Vista Equity will invest $335 million for a 19.7 percent equity stake. As part of the transaction, Raytheon will also contribute $600 million in the form of a loan to the joint venture. Raytheon will also contribute the assets of its Raytheon Cyber Products unit, valued at $400 million. The venture will thus have an enterprise value of $2.3 billion, including capitalization of $1.7 billion in equity and $600 million debt to Raytheon. The deal is expected to close in the second quarter and results from the venture will be consolidated in Raytheon's financial results. Waltham, Massachusetts-based Raytheon was nearly unchanged recently at $107.74.
Posted In: NewsContracts
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