ETI, with annual sales of approximately $61 million, employs 260 people in Denmark, the UK, the US, Asia, and the Middle East.
BAE Systems said the acquisition of ETI supports its strategy of expanding its cybersecurity services business. As part of the strategy, BAE acquired British cybersecurity firm Detica in 2008 and has agreed to acquire L-1 Identity Solutions’ Intelligence Services Group in the US for $295.8 million and stratsec.net in Australia for an undisclosed sum.
L-1’s Intelligence Services Group consists of SpecTal, Advanced Concepts, and McClendon, which are all US suppliers of cybersecurity and intelligence services to the US military, homeland security, law enforcement, and intelligence communities. Stratsec.net operates cybersecurity services facilities in Canberra, Sydney, Melbourne, Singapore, and Kuala Lumpur.
BAE plans to merge ETI with Detica. “The combination of Detica and ETI will create a strong competitor well positioned to offer customers an extensive range of cyber and intelligence services”, said Ian King, BAE's chief executive.
The acquisition is conditional, among other things, upon receiving regulatory approval and is expected to close in the first quarter of 2011.