US-based industrial conglomerate United Technologies announced on Monday it had reached an agreement to buy aerospace supplier Rockwell Collins for $30 billion, including debt.

“This acquisition adds tremendous capabilities to our aerospace businesses and strengthens our complementary offerings of technologically advanced aerospace systems,” said UTC Chairman and Chief Executive Officer 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.”United Technologies (UTC) will offer $140 per share Rockwell Collins, or $23 billion to which will be added the debt recovery.

Rockwell Collins closed Friday at 130.61 dollars on Wall Street. United Technologies’ interest in Rockwell Collins was widely rumored for a number of weeks.

UTC expects the combination will be accretive to adjusted earnings per share after the first full year following closing and generate an estimated $500 million or more in pre-tax cost synergies in four years’ time.