Expansion
BAE has described the rationale for expansion in the US; "[it] is by far the largest defense market with spend running close to twice that of the Western European nations combined. Importantly, US investment in research and development is significantly higher than in Western Europe."[5] When Dick Olver was appointed Chairman in July 2004 he ordered a review of the company's businesses which ruled out further European acquisitions or joint ventures and confirmed a "strategic bias" for expansion and investment in the U.S.[6]
In 1999, the most significant part of the newly created BAE Systems North America was Tracor, which was acquired after its sale to the company's subsidiary, Marconi North America, in 1998. These two companies generated $2.5 billion in sales to the US Department of Defense in the same year.[7] Since 1999, almost all of BAE Systems' growth has been concentrated in the U.S. BAE Systems North America has grown to the point where its sales to the U.S. Department of Defense have surpassed those of its parent to the UK Ministry of Defence.[8] BAE Systems is now by far the largest foreign investor in the US defense industry. With BAE's comprehensive military agreement with the US government and the political and military ties that exist between the US and the UK, BAE Systems has faced little opposition to acquisitions of important US defense contractors.[9] In April 2000, BAE purchased Lockheed Martin Control Systems (LMCS), a manufacturer of electronic controls for aircraft, space vehicles and the transportation industry for US$510 million. LMCS was renamed BAE Systems Platform Solutions. In November 2000 BAE Systems purchased Lockheed Martin Aerospace Electronic Systems, a defense systems company which encompassed Sanders, Fairchild Systems
In December 2002 BAE Systems completed its acquisition of Condor Pacific, Inc. for $58.5 million. Condor Pacific was a manufacturer of sensors and guidance systems for the aerospace industry.[11]
In 2003 BAE Systems acquired Advanced Power Technologies, Inc (APTI), a data exploitation company and provider of communications and networking solutions, for $27 million. APTI was merged into E&IS. In March 2003 BAE Systems acquired MEVATEC, a provider of "professional technical services", which was renamed BAE Systems Analytical & Ordnance Solutions.
In 2004 BAE Systems purchased STI Government Systems, a provider of "photonics, information technologies, system integration ...and a variety of services to other government agencies in areas such as pollution mapping and search and rescue."[12] STI is now part of the CNIR division of BAE Systems E&IS. In August 2004 BAE Systems acquired Boeing Commercial Electronics (now part of the Platform Solutions unit of BAE Systems E&IS). In September 2004 BAE announced the acquisition of the technology company DigitalNet Holdings Inc. The deal was completed on October 25, 2004 for approximately $600 million and the company was merged into the newly created BAE Systems Information Technology.[13] Also in September 2004 BAE announced it was to acquire ALPHATECH, a Massachusetts-based image and signal processing company.[14] ALPHATECH was renamed BAE Systems Advanced Information Technologies.
On March 7, 2005 BAE announced the acquisition of United Defense a major manufacturer of combat vehicles, artillery and naval guns.[15] The acquisition received regulatory approval from the Committee on Foreign Investment in the United States on April 18, 2005 and was completed on June 24.[16][17] United Defense was merged into the newly created BAE Systems Land & Armaments operating group.
BAE Systems announced the purchase of Armor Holdings, a Florida-based manufacturer of military, law enforcement and personnel safety equipment on May 7, 2007.[18] The company was a manufacturer of diversified products for the military, law enforcement, and personnel safety markets.[18] Following regulatory and shareholder approval, the acquisition was completed on July 31, 2007 for approximately $4.532 billion.[19] BAE has received large contracts as a result of the UDI and Armor Holdings acquisitions; for example $1.1bn worth of refurbishment and upgrading work, an order in January 2008 for medium mine-protected vehicles (MMPVs) which could earn up to $2.3bn, and a $2.24bn contract for mine-resistant ambush-protected (MRAP) vehicles in December 2007.[20]
On December 12, 2007, BAE announced the acquisition of Dayton, Ohio-based MTC Technologies. The purchase was finalized in June 2008.[21]
On February 16, 2024, BAE announced the completion of its acquisition of Ball Aerospace from Ball Corporation, and the re-branding of that acquisition as BAE Space and Mission Systems (SMS), for a purchase price of $5.5 billion (U.S.). At the time of the acquisition, approximately 5,200 employees were transferred from the former Ball Aerospace to BAE SMS.[22]
