[SatNews] Raytheon Company (NYSE: RTN) has signed a definitive acquisition agreement with Applied Signal Technology, Inc. (Nasdaq: APSG), a leader in the collection and processing of communications signals to support tactical and strategic intelligence missions.

The agreement has been approved by the boards of directors of both companies. Under the terms of the agreement, Raytheon will commence a tender offer to purchase all of the outstanding shares of Applied Signal Technology, Inc. common stock at a price of $38.00 per share in cash for an aggregate purchase price of approximately $490 million, net of cash acquired. Pending the successful completion of the tender offer, the transaction is expected to close in the first quarter of 2011 subject to customary closing conditions and regulatory approvals. The transaction is not expected to have a material effect on Raytheon's earnings.

Applied Signal's tactical signals and communications intelligence (SIGINT/COMINT) systems, data fusion and information operations/information assurance products, combined with Raytheon's world class sensor technology, program management, mission support and system integration capabilities, will provide highly discriminating solutions to an expanded range of intelligence and defense customers in the United States and around the world.