Strengthening the governmental space market, the $5.5 billion deal will allow UK Defence company BAE Systems to acquire U.S Ball Aerospace, a well-known supplier of spacecraft and instruments for national defense
The deal is set to expand the government space market and deepen its relationship with NASA, a major Ball Aerospace customer.
A statement from the UK-based defence company states the deal offers to strengthen its presence within the US intelligence community and the Department of Defense’s goals.
With an annual revenue of $26 billion, BAE Systems is a key player in the world of defense security. Moreover, its subsidiary in Virginia, known as BAE System INC, supports significant DoD programs.
The addition of Ball Aerospace would undoubtedly broaden the capabilities of BAE systems.
Ball Aerospace holds strong positions in the US military
Ball Aerospace, based in Colorado, specialises in manufacturing spacecraft, components, and systems for various space applications, including military and commercial use.
As a result, it holds strong positions in the US military and civil space, missiles, and munitions markets. Evidently, BAE System’s acquisition of Ball Aerospace aims to capture a larger share of the government space market.
Subject to the usual regulatory green lights and checks and balances, BAE Systems is aiming to wrap up the whole acquisition within 2024.
Unique growth opportunity for BAE systems
BAE Systems’ CEO, Charles Woodburn, emphasises aligning Ball Aerospace’s quality, scale, capabilities, and growth with its strategy.
This is because the Colorado-based company boasts a $3 billion portfolio of sensors, spacecraft, and data services.
To understand why the deal matters even more – over 60% of its 5,200-strong workforce hold US security clearances, reinforcing its appeal to government contracts.
With this robust clearance rate, Ball Aerospace gains a distinctive edge in effectively navigating classified projects and following strict government requirements.
BAE Systems and government collaboration
This strategic move provides BAE Systems with a broader portfolio and enhanced capabilities, leading the company to become a compelling partner for global defence contracts, research and projects.
This, in turn, fortifies BAE Systems’ position as a key player in national and international security endeavours.
The potential to redefine the future of defense, security, and aerospace.
BAE System’s acquisition of Ball Aerospace is not just a transaction; it has the potential to redefine the future of defense, security, and aerospace.
