BAE Systems and EADS are to form a new joint venture company called Paradigm Secure Communications to address the service provision requirements of the UK Ministry of Defence’s Skynet 5 programme – the future military communications satellite system.
BAE Systems will have control of the UK operations of the joint venture, while Paradigm Secure Communications will contract with Astrium for the manufacture and provision of satellites and ground systems.
In parallel, BAE Systems has agreed to sell to EADS its 25% voting interest and 27.5% economic interest in the Astrium space joint venture for 165 million Euros. EADS currently holds a 75% voting interest and 72.5% economic interest in Astrium.
Completion of the sale is conditional upon obtaining all necessary regulatory clearances and upon finalisation of the UK MoD contract for Skynet 5 with Paradigm Secure Communications Limited.
Completion is expected to take place before the end of the year.
Astrium employs 8,400 persons, of which over 2,200 are employed in the UK. In the year 2001, the company had sales of 1.9 billion Euros.