Honeywell (NASDAQ:HON) announced on Thursday it has reached an agreement to acquire CAES Systems, a leading aerospace and defense technology company, for $1.9 billion from Advent International.
This acquisition, an all-cash deal, marks Honeywell's second recent move to improve its aerospace technologies unit as part of its transition toward megatrends like automation, aviation, and energy transition.
The deal was first reported by the Wall Street Journal.
In recent years, Honeywell has focused on mergers and acquisitions to boost high-performing segments while divesting non-aligned units. The aerospace sector, in particular, has driven the company’s performance, thanks to strong demand from major clients like Boeing (NYSE:BA) and Airbus amid a surge in travel demand.
CAES, formerly known as Cobham Advanced Electronic Solutions, specializes in the design, development, and testing of advanced electronics such as antenna systems and communication networks for aerospace and defense companies.
Honeywell shares fell 0.3% in premarket trading Thursday.