BAE Systems announced that it has signed a definitive agreement to sell its Inertial Products business to J.F. Lehman for $140m cash subject to customary post-closing adjustments.

The Inertial Products business supplies military and commercial customers inertial sensors and measurement units for the control, navigation and guidance of fixed- and rotary-winged aircraft, precision weapon systems, missiles, unmanned aerial vehicles, aerial targets and drones, tanks and fighting vehicles. It has approximately 810 employees at sites in the US and UK.

The sale also includes BAE Systems’ share of Silicon Sensing Systems, a joint venture between BAE Systems and Silicon Sensing Systems that is based in the UK and Japan.

The transaction is expected to occur within 60 days following receipt of regulatory approvals.

BAE Systems said the sale is consistent with its strategy to expand as a developer and integrator of systems and de-emphasise its role as a components provider.