Raytheon and United Technologies have announced an all-stock agreement the two companies call a merger of equals.

It will also create the defense-aerospace giant Raytheon Technologies with an expected $74 billion in annual sales, second only to Boeing’s $101 billion. The transaction website is www.futureofaerospacedefense.com.

Both companies have a significant presence in Huntsville.

“Today is an exciting and transformational day for our companies, and one that brings with it tremendous opportunity for our future success,” said Tom Kennedy, Raytheon chairman/CEO. “Raytheon Technologies will continue a legacy of innovation with an expanded aerospace and defense portfolio supported by the world’s most dedicated workforce.

“With our enhanced capabilities, we will deliver value to our customers by anticipating and addressing their most complex challenges, while delivering significant value to shareowners.”

The merger of Raytheon, a leading defense company, and United Technologies, a leading aerospace company, comprised of Collins Aerospace and Pratt & Whitney, will offer a complementary portfolio of platform-agnostic aerospace and defense technologies.

“The combination of United Technologies and Raytheon will define the future of aerospace and defense,” said Greg Hayes, United Technologies chairman/CEO. “Our two companies have iconic brands that share a long history of innovation, customer focus and proven execution. By joining forces, we will have unsurpassed technology and expanded R&D capabilities that will allow us to invest through business cycles and address our customers’ highest priorities. Merging our portfolios will also deliver cost and revenue synergies that will create long-term value for our customers and shareowners.”

Raytheon plans to consolidate its four businesses into two businesses: Intelligence, Space & Airborne Systems and Integrated Defense & Missile Systems. The new businesses will join Collins Aerospace and Pratt & Whitney to form the four businesses of Raytheon Technologies.

Hayes will be named CEO of Raytheon Technologies and Kennedy will be appointed executive chairman. Hayes will assume the role of chairman and CEO two years after closing.