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Huntington Ingalls Industries To Acquire Hydroid For $350M

Huntington Ingalls Industries (NYSE:HII) announced today that it has entered into an agreement to acquire Hydroid Inc. a leading provider of advanced marine robotics to the defense and maritime markets and a U.S. based

Benzinga · 02/04/2020 12:17

Huntington Ingalls Industries (NYSE:HII) announced today that it has entered into an agreement to acquire Hydroid Inc. a leading provider of advanced marine robotics to the defense and maritime markets and a U.S. based indirect subsidiary, wholly owned by Kongsberg Maritime. In conjunction with the transaction, HII and Kongsberg Maritime are also establishing a strategic alliance to jointly market naval and maritime products and services to the U.S. government market and potentially to global markets.

Hydroid, based in Pocasset, Massachusetts, will become part of HII’s Technical Solutions division. The acquisition of Hydroid expands HII capabilities in the strategically important and rapidly growing autonomous and unmanned maritime systems market. The transaction is subject to regulatory review and customary closing conditions and is expected to close in the first quarter of 2020. The value of the transaction is $350 million, which will be effectively reduced by tax benefits that are preliminarily valued over $50 million, to be received by HII.