Raytheon buys BBN for $350 million

Published 27 October 2009

The latest example of traditional defense contractors expanding into the information systems sector is Raytheon’s acquisition of Massachusetts-based BBN, the company which put the “@” in e-mail addresses

Raytheon has acquired Cambridge, Massachusetts-based BBN, famous for inventing forerunner Internet kit, and for giving the world the “@” symbol in e-mail addresses. This is but the latest example of traditional defense contractors expanding into the information systems sector (see “Defense Contractors Look to Cybersecurity for Growth,” 16 June 2009 HSNW).

According to Raytheon, BBN went for “approximately $350 million, subject to post-closing adjustments.” Raytheon expects no material impact on its Q4 numbers as a result of the acquisition. “BBN has tremendous technological capabilities, and we see immediate opportunities for applying its technologies to enhance our products,” said Colin Schottlaender, president of Raytheon’s Network Centric Systems. “The depth of scientific and engineering talent inside BBN is very impressive, and we look forward to better serving our customers through the strengths of our combined organizations.”

BBN will become part of Network Centric Systems and operate as Raytheon BBN Technologies.

Becoming part of Raytheon is good for our business, our customers and our employees,” said Robert “Tad” Elmer, president and CEO of BBN. “Together we will be able to transition very advanced technologies quickly into larger programs, creating both the most advanced systems possible for customers and rich opportunities for our scientists and engineers.”

Lewis Page writes that the original Bolt, Beranek, and Newman that became today’s BBN was a major player in the rise of the Arpanet, forerunner of the Internet. Today, BBN still operates in the field of networks and computing: it has contracts with DARPA (which is heir to ARPA, father of the ARPAnet) for such things as “Machine Reading” and the “Wireless Network After Next.”