Finmeccanica and BAE Systems have finalised a deal under which they will merge BAE Systems Avionics and Galileo Avionica to form a new company, Selex Sensors and Airborne Systems, of which Finmeccanica will own 75% and BAE 25%. The two companies have also agreed to dissolve the BAE/Finmeccanica AMS joint venture, with BAE paying Finmeccanica an equalising amount of £50.5 million ($96.4 million) for the difference in value between AMS's UK and Italian operations. In addition, Finmeccanica takes on AMS's UK Air Traffic Management business for £6.5 million in cash and the assumption of debt. BAE has agreed to sell its UK communications business to Finmeccanica subsidiary Selenia Communications for £25.4 million. BAE intends to form an integrated system technologies business by combining the capabilities of AMS's UK operations and BAE's C4ISR networked systems and solutions business.
Source: Flight International
