BAE Systems has finalised the purchase of Lockheed Martin's Control Systems unit for $510 million. The deal, revealed in Flight International (25 April-1 May), enhances the UK company's electronic systems and aircraft flight controls capabilities, and extends its product offerings into commercial full-authority digital engine controls (FADEC).

Control Systems, which employees 1,750 people in New York state and Indiana, was defined as non-core to Lockheed Martin's business when the US giant reviewed its operations last year after a poor performance in 1998. Its Sanders electronic warfare unit is also for sale, with BAE in the bidding as it broadens its US presence.

Control Systems specialises in FADEC and digital fly-by-wire technologies, last year generating a $42 million pre-tax profit on sales of $359 million. Major military aircraft served include the Boeing C-17 Globemaster, F/A-18 Hornet and Bell Boeing V-22 Osprey tiltrotor. The unit also makes vehicle management systems and related airborne electronic systems, space launch vehicle control systems, and vehicle power drives.

After the deal, BAE will employ more than 20,000 people in North America, where - after its merger with Marconi Electronic Systems - it is active in mission management and strategic planning systems, communications and datalinks, combat systems, and civil/military avionics and navigation systems.

• BAE and Sweden's IFS (Industrial and Financial Systems) are to form a software company to target military and civil aviation markets for logistics information systems, fleet management and maintenance systems. The company will combine BAE's Paradigm subsidiary with IFS.

Source: Flight International