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Raytheon and IBM Sign Contract to Collaborate on Aerospace and Defense

October 1, 2003
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Raytheon Co. and IBM announced plans to work together to design custom semiconductors and systems for customers in the aerospace and defense industry. The two companies have formed a strategic relationship that brings together Raytheon's expertise in defense electronics technology and aerospace and defense, and IBM's leadership in complementary areas such as cutting-edge chip design, software development, large systems computer architecture and network integration. Raytheon and IBM intend to work together to market the solutions they design.


"This powerful relationship will draw on the two companies' vast engineering and manufacturing experience, worldwide technical leadership and expertise, and an in-depth knowledge of industry needs to deliver innovative, cost-effective mission solutions to our customers," stated Greg Shelton, corporate vice-president of engineering, technology, manufacturing and quality, Raytheon Co. "Aerospace and defense are becoming increasingly reliant on the ability to integrate advanced technology into so-called commercial off-the-shelf products (COTS) and we have a great deal of experience and success in this area. Now, combining many of our skills, our goal will be to deliver designs even quicker, giving our customers a competitive advantage," said Pat Toole, general manager, Engineering and Technology Services, IBM Technology Group.

Both companies believe that working cooperatively on existing and new programs will provide their customers with the best solutions, improve performance and provide a foundation for future business. The contract could be worth up to $100 M to IBM over five years. The two companies are creating a project office to respond to customer needs and oversee potential joint projects and contractual engagements.

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