Ball Aerospace is a "leading provider of spacecraft, mission payloads, optical systems, and antenna systems," the UK company said, adding that the acquisition would allow BAE Systems to strengthen its portfolio with high-end technology capabilities.
"BAE Systems plc ('BAE Systems' or the 'Company') announces that it has entered into a definitive Stock Purchase Agreement to acquire the Ball Aerospace business from Ball Corporation for c.$5.55bn in cash, subject to customary closing adjustments," the company said in a statement.
The deal is expected to be completed in the first half of 2024, the statement read, adding that the acquisition would be funded through a combination of new external debt and existing cash resources.
Earlier in the month, a British newspaper reported that BAE Systems had booked a record 66 billion pounds ($84 billion) in contracts with various countries to meet their growing demand for weapons supplies.
Ball Aerospace is a US manufacturer of spacecraft, components and instruments for national defense and civil space applications. The company is headquartered in Colorado and employs more than 5,200 people.