Raytheon's (NYSE:RTN) Acquisition of APSG Will Boost Company Says Gleacher

Raytheon (NYSE:RTN) will gain some momentum on the acquisition of APSG, which they recently announced they're going to acquire.

Gleacher said about the deal: "RTN announced last week that it has entered into a definitive agreement to acquire APSG. RTN will commence a tender offer to purchase all outstanding shares APSG at a price of $38.00 per share in cash for an aggregate purchase price of - $490 million. The deal is expected to close very early in 1Q11.

"We have raised our 2011 and 2012 top-line by - $250 million and - $300 million, respectively to reflect the addition of APSG. Our new 2011 and 2012 GAAP EPS estimates are $4.85 (up $0.25) and $5.58 (up $0.08), respectively. 2010 remains unchanged at $4.60."

Gleacher & Co. maintains a "Buy" on Raytheon, which closed Monday at $45.57, losing $0.01, or 0.02 percent. Gleacher raised their price target on them to $55.