The company's Paveway is a kit that transforms "dumb" bombs into precision-guided munitions.
The contract with Saudi Arabia has a monetary value of $475 million, the company said.
"Raytheon's Paveway family of weapons provides the warfighter unmatched precision and standoff capability," said Taylor W. Lawrence, Raytheon Missile Systems president. "This sale is the latest chapter in Raytheon's 4-decade-long commitment to the Kingdom of Saudi Arabia and regional security in the Arabian Gulf."
Additional details concerning the number of Paveway kits Raytheon will provide and delivery details weren't disclosed.
This deal cements Raytheon's long-standing commitment to Saudi Arabian industry and keeps production lines operational in the United States.
"By using many of our usual suppliers to produce Paveway subcomponents, the contract keeps Americans employed," said Mike Jarrett, vice president of Supply Chain Management at RMS. "We will also partner with Saudi Arabian industry to fulfill the support equipment portion of the contract."