BAE Systems plc has entered into a definitive Stock Purchase Agreement to acquire the Ball Aerospace business from Ball Corporation for around $5.55bn in cash, subject to customary closing adjustments.

Ball Aerospace is a provider of mission critical space systems and defence technologies, and BAE has identified it as a highly complementary fit, adding material scale of high calibre space, optical and antenna solutions.

Charles Woodburn, Chief Executive of BAE Systems, says: “The proposed acquisition of Ball Aerospace is a unique opportunity to add a high quality, fast growing technology focused business with significant capabilities to our core business that is performing strongly and well positioned for sustained growth. It's rare that a business of this quality, scale and complementary capabilities, with strong growth prospects and a close fit to our strategy, becomes available.

“The strategic and financial rationale is compelling, as we continue to focus on areas of high priority defence and Intelligence spending, strengthening our world class multi-domain portfolio and enhancing our value compounding model of top line growth, margin expansion and high cash generation.

“We couldn't be more pleased to have reached this agreement and we look forward to welcoming the employees of Ball Aerospace to BAE Systems as we work together to support our customers and create value for shareholders.”

Ball Aerospace is a provider of spacecraft, mission payloads, optical systems, and antenna systems with decades of proven success underpinned by world class advanced technologies. It has trusted customer relationships among the Intelligence Community, US Department of Defense, and civilian space agencies. The business has been a pioneer in its markets for many decades and is organised into four main divisions: National Defense, Tactical Solutions, Civil Space, and Advanced Technology and Information Solutions.

The business operates across a broad base of customers and platforms. It is well positioned in highly attractive markets, military and civil space, C4ISR, and missile and munitions.

The business is headquartered in Colorado, with more than 5,200 employees, of whom over 60% hold US security clearances. It will add more than $2bn in annual revenues in the growing space domain, C4ISR and missile and munitions markets.

Completion is subject to customary regulatory approvals and conditions with a targeted completion date in the first half of 2024.