BAE Systems Buying United Defense

The U.K. defense firm is paying about $4 billion for the maker of the Bradley Fighting Vehicle.
By TSC Staff ,

United Defense Industries

(UDI)

shares jumped Monday on news it is being acquired by U.K.-based defense contractor

BAE Systems

for $3.97 billion.

The all-cash deal values the Arlington, Va.-based company at $75 a share, 29% premium based on United Defense's Friday close of $58.26. BAE, which is trying to boost its share of the lucrative U.S. market, expects the deal to close midyear and immediately boost earnings,

UDI is best known for the Bradley Fighting Vehicle, but also makes artillery systems, naval guns and missile launchers for the Pentagon as well as U.S. allies.

United Defense shares were trading at $73.50, up $15.24, or 26.2%, in the premarket.

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