United Technologies (NYSE: UTC) announced Wednesday that the company is acquiring Rockwell Collins (NYSE: COL) for $140 per share, in cash and UTC stock.

“This acquisition adds tremendous capabilities to our aerospace businesses and strengthens our complementary offerings of technologically advanced aerospace systems,” said UTC Chairman and CEO Greg Hayes. “Together, Rockwell Collins and UTC Aerospace Systems will enhance customer value in a rapidly evolving aerospace industry by making aircraft more intelligent and more connected.”

Rockwell Collins, the U.S.-based avionics and information technology company, operates with customers around the world, in both the commercial space and defense industry.

The company also manages a strong investment in simulation and training. In August, it announced a new contract with the French Air Force for the FOMEDEC training program. And alongside the acquisition news Wednesday, unveiled plans for the Defence & Security Equipment International (DSEI) 2017. Within all its arms, Rockwell Collins’ estimated sales for 2017 are greater than $8 billion.

Under the terms of the agreement, each Rockwell Collins shareowner will receive $93.33 per share in cash and $46.67 in shares of UTC common stock, subject to a 7.5 percent collar centered on UTC’s August 22, 2017 closing share price of $115.69.

The cash portion of the transaction is expected to be covered through debt issuances and cash on hand. The transaction is project to close by the third quarter of 2018, subject to approval by Rockwell Collins’ shareowners and the receipt of required regulatory approvals.

UTC is expected to have global sales of approximately $67-68 billion after the transaction completes.

When the transaction completes, Rockwell Collins and UTC Aerospace Systems will be integrated to create a new business unit named Collins Aerospace Systems. Current Rockwell Collins president and CEO, Kelly Ortberg, will take the role of CEO for this new division with UTC Aerospace Systems president, David Gitlin, serving as president and chief operating officer.

“We have demonstrated we can successfully integrate large acquisitions into our business and I have full confidence that the team has the capability to do it again,” Hayes said. “Once we have completed the integration of Rockwell Collins and made progress towards reducing leverage back to historical levels, we will have an opportunity to explore a full range of strategic options for UTC.”

A UTC representative said Rockwell Collins is a perfect fit and addition to the company’s current offerings. Pending a thorough look into Rockwell Collins’ portfolio, no decisions are currently being made towards what programs will continue, shift or stop.

Hayes told CNBC in an interview that this “is not a job cuts story,” and “this is not about closing a lot of factories.”