United Technologies (UTX) announced that it would acquire Rockwell Collins (COL) in a deal valued at $23 billion, which is the biggest acquisition that has ever happened in the aerospace industry. Let's look at what that means for investors of both companies.
The deal
United Technologies will pay a total of $140 per share for Rockwell Collins' shares, made up by $93 in cash and $47 in the form of United Technologies shares. That values Rockwell Collins' equity at $23 billion, which means that the deal's total value is $30 billion when we include Rockwell Collins' debt.
