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25 Jul 02. BAE SYSTEMS and EADS, said on Thursday that they are teaming to address military telecommunication satellite services.

As a first step, the partners will form a new joint venture company, Paradigm Secure Communications Limited, to address service provision requirements of the U.K. Ministry of Defence’s Skynet 5 programme.

BAE SYSTEMS will have control of the U.K. operations of this joint venture.Paradigm Secure Communications will contract with Astrium for the manufacture and provision of satellites and ground systems. Skynet 5 is the future military communications satellite system for the U.K. Ministry of Defence.

The companies said Paradigm has been designated as the preferred bidder for this service provision.

“These arrangements pave the way for the future development of Astrium within EADS and demonstrates BAE SYSTEMS, commitment to develop the services and support elements of our business,” said Chris Geoghegan, Chief Operating Officer, BAE SYSTEMS plc.

“These arrangements will give us the ability to consolidate and develop space systems, one of our core businesses, and to continue and to expand a fruitful partnership with BAE SYSTEMS in military satellite communication services,” said Francois Auque, Member of the EADS Executive Committee and Head of the Space Systems Division. “Consolidating our ownership of Astrium will allow EADS to enhance its strategic positioning in a rapidly changing market place,”

“EADS is very much at home in the UK. This move enhances the commitment to our already strong industrial presence, our British customer, our long-established partner BAE SYSTEMS and our 11,000 strong, highly-skilled UK-workforce,” he added

In parallel, BAE SYSTEMS said it has Thursday agreed to sell to EADS its 25% voting interest/27.5% economic interest in the Astrium space joint venture for EUR165m.

EADS currently holds a 75% voting interest/72.5% economic interest in Astrium.Completion of the sale is conditional upon obtaining all necessary regulatory clearances and upon finalisation of the U.K. MoD contract for Skynet 5 with Paradigm Secure Communications Limited.

Completion is expected to take place before the end of the year.
The sale is in line with BAE SYSTEMS’ strategy to focus on developing and delivering advanced systems and services in the defence and aerospace sectors.

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