General Dynamics snaps up GTE government units

General Dynamics Corp. announced today it will buy three of GTE Corp.'s government systems organizations for $1.05 billion.

The three organizations, which employ about 6,200 people, are GTE's Communication Systems Division in Taunton, Mass.; GTE's Worldwide Telecommunications Services in Needham, Mass.; and GTE's Electronic Systems Division in Mountain View, Calif.

A spokeswoman for General Dynamics said the company has not decided how it will integrate the three organizations into its corporate structure. She said the transaction has been approved by both companies, and the deal is expected to close with two months.

A GTE spokesman said the company's Information Systems Division in Chantilly, Va., was not part of the deal. Unlike the three divisions bought by General Dynamics, the IS organization does not focus on Defense Department business.

The spokesman said GTE is continuing negotiations to sell the IS group, the company's only government sales organization left unsold. "There is interest from a number of potential buyers," he said.

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