Raytheon, IBM to collaborate on defense

Raytheon Co. and IBM Corp. are working together to design custom chips and systems for defense and aerospace.

The companies announced a partnership today that combines Raytheon's expertise in defense electronics with IBM's strengths in chip design, software development, large systems computer architecture and network integration.

IBM wants to develop a federal business in component design and engineering, spokesman Cary Ziter said. The company formed its Engineering and Technology Services division last year and has not established a track record for it.

Raytheon, Ziter said, will open doors for IBM's engineering and technology services division, which was formed last year.

"We wanted to get our toe into that water with somebody with a brand name and somebody we could work with closely," he said.

Ziter said the arrangement could be worth up to $100 million for IBM over the next five years. Raytheon chose not to estimate a value, said a spokesman there.