Headquartered in Colorado, Ball Aerospace offers spacecraft, mission payloads, optical systems, and antenna systems with advanced technologies, and has a workforce of over 5,200 employees, of whom more than 60% have US security clearances
Ball Aerospace to be acquired by BAE Systems in an all-cash deal. (Credit: BAE Systems)
UK-based defence and aerospace firm BAE Systems has agreed to acquire Ball Aerospace, an American mission critical space systems and defence technologies provider, from Ball in an all-cash deal worth approximately $5.6bn.
BAE Systems said the proposed transaction would be considered an asset purchase for federal tax purposes.
The deal entails a projected net present value tax benefit of nearly $750m, which brings the underlying economic consideration for the business to about $4.8bn, said the company.
Headquartered in Colorado, Ball Aerospace offers spacecraft, mission payloads, optical systems, and antenna systems with advanced technologies. It has a workforce of over 5,200 employees, of whom more than 60% have US security clearances.
The company is organised into four divisions, namely national defence, tactical solutions, civil space, and advanced technology and information solutions.
Besides, Ball Aerospace is said to have robust positions in military and civil space, C4ISR, and missile and munition markets, which align with the highest priorities of the US Intelligence Community and Department of Defense.
Ball chairman and CEO Daniel Fisher said: ”The complementary cultural fit of Ball Aerospace and BAE Systems and their combined position as a pure play aerospace and technologies company will leverage Ball’s recent investments in talent and facilities located across the country and centred in Boulder, Broomfield and Westminster, Colorado, to provide a multi-dimensional platform for vital national defence, intelligence, and science hardware, software, and space-based assets.”
Through the acquisition, BAE Systems aims to bolster its multi-domain portfolio and improve growth prospects in the US market.
The company also hopes to increase its US classified revenues, offerings, and embedded customer relationships.
BAE Systems chief executive Charles Woodburn said: “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.”
BAE Systems expects to finance the proposed deal by a combination of new external debt and existing cash resources.
Subject to regulatory approvals and other customary conditions, the deal is anticipated to be complete in the first half of 2024.