BAE buys US security unit for £189m

Defence giant BAE Systems is to buy part of an American intelligence business in a £189 million deal.

The group said yesterday it is acquiring three divisions of L-1 Identity Solutions, which deal with security issues such as counter-terrorism, identity theft and money laundering.

The three businesses - SpecTal, Advanced Concepts and McClendon - work alongside the intelligence sector in the US, providing consultancy, IT and engineering services.

The three divisions will join BAE's intelligence and security sector, which is based in Arlington, Virginia, and falls under BAE's customer support and services division which generated 49 per cent of group revenues in the first half of the year.

The acquisition will see more than 1,000 staff join BAE Systems, which reported sales of 22.4 billion in 2009. It comes as the company prepares itself for looming government cuts to the UK defence budget.

Earlier this month, the firm announced plans to axe nearly 1,000 jobs in the UK following changes to the defence programme announced last year.

The US accounts for half of its business, whereas the UK represents 20 per cent.