BAE systems, Finmeccanica establish new partnerships

Sea Power, Sep 2003

On 4 July 2003, Britain's BAE Systems and Italy's Finmeccanica signed a memorandum of understanding establishing a new partnership known as Eurosystems, merging their respective electronic systems activities. The partnership establishes a strategic coordination committee and three majority-controlled joint ventures. The three joint ventures will operate in the following business areas:

Systems integration and command, control, communications, computing, intelligence, surveillance, and reconnaissance (C4ISR) business: majority-owned and managed by BAE Systems with capabilities in C4ISR information systems and subsystems, combat management systems, land and naval radars, and air traffic control systems. The business will be formed from existing activities of Alenia Marconi Systems, a 50-50 joint venture of BAE Systems and Finmeccanica, and BAE Systems C4ISR (less communications).

Communications systems business: Majority-owned and managed by Finmeccanica with capabilities in strategic and tactical communications systems, networks, and secure systems. The business will be formed from the existing activities of Marconi Selenia communications and the communications activities of BAE Systems, C4ISR.

Avionics business unit: Majority-owned and managed by Finmeccanica with capabilities in sensor systems, airborne radars, missions systems, electro-optics and electronic warfare systems. The business will be formed from activities within BAE Systems Avionics and Finmeccanica's Galileo Avionica.

Both BAE Systems and Finmeccanica believe the merging of these business units will support the multiple-domain nature of future defense requirements and respond to the increasing demand for highly integrated systems. It also further clarifies accountability and positions both businesses in line with the needs of the market.