The defense sector in the United States is booming as the government looks to buy more sophisticated technology and weapons, which is why mergers between mammoth defense companies have now become a common practice. Mergers help large companies to pool their resources behind a particular project and give them a better chance at bagging the billion-dollar contracts.
New Product and Potential Application
Liberty Defense Holdings Ltd. is a security company looking to pioneer a groundbreaking product into the industry. As of now, they are only listed on the Canadian exchange as “SCAN.V”. Their product is known as HEXWAVE and it could transform public space security as we know it.
HEXWAVE is a 3D imaging technology product that can detect any kind of potential threat. It utilizes AI and deep learning in order to reduce human errors. HEXWAVE could be used in parks, schools, churches, concerts, sporting events, etc.
The application is practically endless. In addition, HEXWAVE has, as Sean Reyes states, “[struck] the balance between privacy interests on one side and security and safety.” This is important for the product to have given personal security is a huge factor for the general public.
Liberty plans on implementing its product for testing at various sites. This will allow the company to assess how the product reacts to different environments. As of now, Liberty Defense has signed two MOU’s for its use. One is in Utah as well as in Vancouver Arena.
In addition, Liberty has added Anthony Sleiman and Mit Shah to their Board of Advisors. Both men have experience with running business operations that involve watching over many people.
[News Release] Anthony T. Sleiman Joins Liberty Defense’s (SCAN) Board of Advisors
Mr. Sleiman has experience with real estate development and Mr. Shah has knowledge in the lodging and hotel industry. While they are not directly involved with security, both industries require it. These men understand where things can be improved.
So What Was The The Mega Defense Industry Merger?
In a new development, aerospace companies United Technologies (UTX) and Raytheon (RTN) announced the news of their imminent merger on Sunday. The deal is going to be completed entirely in stock. Mergers and acquisitions have become a bit of a trend in the defense industry and back in 2018, United Technologies acquired Rockwell Collins to raise their profile as an aerospace company. The deal was worth $23 billion.
The new entity will be known as Raytheon Technologies Corp and will create a defense behemoth that would boast of annual revenues to the tune of $74 billion. In the joint statement, the two firms touched upon the fact that the merger will allow it to further expand their research and development capabilities.
The new entity will have a far diverse range of products and services on offer and it will also make it a far more resilient company in the cutthroat world of defense contracting. Although a merger of such magnitude will likely come under scrutiny, experts believe that it would not be a problem since the two companies’ products do not really overlap.
The Chief Executive Officer of United Technologies, Gregory Hayes stated that the merger will allow the companies to combine their inherent strengths.
“Merging our two companies brings Raytheon’s deep expertise to vehicle integration, advanced guidance and control, and payload and combines it with UTC’s world-class propulsion technology.”Gregory Hayes, Chief Executive Officer of United Technologies
The deal’s expected to be completed at some point within the first six months of 2020. CEO of Raytheon Tom Kennedy also hosted his investor call. During it, he stated that once the merger’s completed, the company could have $8 billion a year to spend on research and development activities.