Honeywell has signed an agreement to acquire COM DEV International, a leading satellite and communications equipment provider.

Under the agreement, Honeywell will acquire COM DEV International's electrical and optical components and subsystems equipment businesses for $345 million. The Canada-based company produces equipment used in over 950 spacecraft, and 80 percent of all commercial communication satellites. At the same time, COM DEV will spin off its exactEarth subsidiary to current shareholders.

"COM DEV is a terrific fit for Honeywell," Honeywell Aerospace president and CEO Tim Mahoney said in a statement. "COM DEV's differentiated technologies and strong position in the growing connectivity industry make the company an attractive addition to our business. We are equally excited about what we can bring to COM DEV, specifically our broad product portfolio, deep industry expertise and relationships, global sales force and brand, and our proven Honeywell Operating System."

COM DEV currently holds over 250 patents, employs over 1,250 people, and has facilities in Canada, China, India, the United Kingdom, and the United States. Following the purchase, COM DEV will be part of Honeywell's Defense and Space business with the aim of growing the company's production of satellite technology products.

Honeywell's acquisition of COM DEV is subject to government regulatory and shareholder approval. The acquisition is expected to close by the first quarter of 2016.