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BAE Systems, a UK-based defence contractor, has announced its plans to acquire satellite manufacturer Ball Aerospace for GBP4.3 billion (USD5.6 billion) in cash. Ball Aerospace, headquartered in Colorado, specializes in building satellite buses, instruments, and sensors for spacecraft. They also produce non-space products such as antenna suites for the Lockheed Martin F-35 Lightning II Joint Strike Fighter and the SeaSparrow/Stalker long-range sensor system. Their customers include the US Department of Defense, US Intelligence Community, and NASA.

The acquisition of Ball Aerospace is seen as a unique opportunity for BAE Systems to expand its multidomain portfolio with a technology-focused business that has relevant capabilities. The growth rates of Ball Aerospace have impressed BAE Systems officials, with the company doubling its annual revenue over the past five years to USD2.2 billion. It is projected that Ball Aerospace could reach USD4 billion in revenue by the end of the decade.

According to BAE Systems CEO Charles Woodburn, the availability of a business with such quality, scale, strategic fit, and strong growth prospects is rare. BAE Systems has expressed interest in Ball Aerospace for several years but did not believe it would be sold.

The parent company of Ball Aerospace, Ball Corporation, stated that it is selling the business to reduce debt and focus on its primary activity of manufacturing aluminium cans for beverages and consumer products. This announcement comes after Ball Corporation revealed in June that it was considering options for its Aerospace business.

The acquisition of Ball Aerospace by BAE Systems marks the latter’s strategic move into the fast-growing space market and is expected to further strengthen its position in the industry.

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