BAE Systems tables £538m Detica bid

Global defence and aerospace company BAE Systems has tabled a £538m bid for business and technology consultancy Detica.

Detica specialises in IT security services and technology to counter threats to national security or the public as well as those posed by organised or serious crime.

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BAE Systems is aiming to establish a UK security business and has identified national security and resilience as an area it wants to expand in.

The company believes the government will double spending in the sector to around £3bn by 2011.

The acquisition of Detica would accelerate BAE's growth in the sector while it also continues to invest in organic growth.

A tie-up is expected to bring strong growth and create cost efficiencies and BAE Systems claims it would get a return on investment from the acquisition after three years.

BAE Systems COO, Ian King, said the acquisition will combine Detica's customer relationships and technical strengths with BAE's system integration capabilities.

The deal is now dependant on regulatory approval and Detica's shareholders accepting the offer but is expected to be completed by the end of year.