BAE Systems Inc . BAE Systems Inc . ( formerly BAE Systems North America ) is a major subsidiary of the British defence and aerospace company BAE Systems plc . As per its Special Security Agreement , BAE Systems Inc . operates as a semi - autonomous business unit within BAE Systems controlled at a local level by American management . BAE has described the rationale for expansion in the US ; " [ it ] is by far the largest defence market with spend running close to twice that of the Western European nations combined . Importantly , US investment in research and development is significantly higher than in Western Europe . " The company ' s 2004 strategy review confirmed a " strategic bias " for expansion and investment in the US . In 2007 BAE Systems Inc . had sales of £7 , 454 million and EBITA of £741 million . These represent 46 % and 45 % respectively of BAE Systems ' group results . History . The company was created on November 30 , 1999 . On this date Marconi Electronic Systems ( MES ) and British Aerospace ( BAe ) merged to form BAE Systems . Their respective subsidiaries in the USA , Marconi North America and British Aerospace North America , were similarly merged to form BAE Systems North America . In the company ' s 2003 Annual Report the Chairman sums up BAE Systems ' strategy since the merger ; " In recent years BAE Systems has undergone a radical transformation from a UK - based aircraft manufacturer to a broadly - based systems business . Through this transformation the company has achieved a more balanced portfolio and geographic spread . " BAE Systems North America was renamed BAE Systems Inc . in 2005 following a major reorganisation of BAE Systems plc as a result of the Eurosystems ( SELEX Sistemi Integrati ) and UDI transactions . Expansion . BAE has described the rationale for expansion in the US ; " [ it ] is by far the largest defence market with spend running close to twice that of the Western European nations combined . Importantly , US investment in research and development is significantly higher than in Western Europe . " When Dick Olver was appointed Chairman in July 2004 he ordered a review of the company ' s businesses which ruled out further European acquisitions or joint ventures and confirmed a " strategic bias " for expansion and investment in the US . In 1999 the most significant part of the newly created BAE Systems North America was Tracor , which was acquired by Marconi North America in 1998 . Since 1999 almost all of BAE Systems ' growth has been concentrated in the US . BAE Systems North America has grown to the point where its sales to the ( American ) Department of Defense have surpassed those of its parent to the ( British ) Ministry of Defence . BAE Systems is now by far the largest foreign investor in the US defence industry . With the political and military ties that exist between the US and the UK , BAE Systems has faced little opposition to acquisitions of important US defence contractors . In April 2000 BAE purchased Lockheed Martin Control Systems ( LMCS ) , a manufacturer of electronic controls for aircraft , space vehicles and the transportation industry for $ 510 million USD . LMCS was renamed BAE Systems Platform Solutions . In November 2000 BAE Systems purchased Lockheed Martin Aerospace Electronic Systems , a defence systems company which encompassed Sanders , Fairchild Systems and Lockheed Martin Space Electronics & Communications . Following an internal reorganisation the division became BAE Systems Electronics & Integrated Solutions ( E & IS ) . This acquisition was described by John Hamre , CEO of the Center for Strategic and International Studies and former Deputy Secretary of Defense , as " precedent setting " given the advanced and classified nature of many of that company ' s products . In December 2002 BAE Systems completed its acquisition of Condor Pacific , Inc . for $ 58 . 5 million . Condor Pacific was a manufacturer of sensors and guidance systems for the aerospace industry . In 2003 BAE Systems acquired Advanced Power Technologies , Inc ( APTI ) , a data exploitation company and provider of communications and networking solutions , for $ 27 million . APTI was merged into E & IS . In March 2003 BAE Systems acquired MEVATEC , a provider of " professional technical services " , which was renamed BAE Systems Analytical & Ordnance Solutions . In 2004 BAE Systems purchased STI Government Systems , a provider of " photonics , information technologies , system integration . . . and a variety of services to other government agencies in areas such as pollution mapping and search and rescue . " STI is now part of the CNIR division of BAE Systems E & IS . In August 2004 BAE Systems acquired Boeing Commercial Electronics ( now part of the Platform Solutions unit of BAE Systems E & IS ) . In September 2004 BAE announced the acquisition of the technology company DigitalNet Holdings Inc . The deal was completed on October 25 , 2004 for approximately $ 600 million and the company was merged into the newly created BAE Systems Information Technology . Also in September 2004 BAE announced it was to acquire ALPHATECH , a Massachusetts - based image and signal processing company . ALPHATECH was renamed BAE Systems Advanced Information Technologies . On March 7 , 2005 BAE announced the acquisition of United Defense Industries a major manufacturer of combat vehicles , artillery and naval guns . The acquisition received regulatory approval from the Committee on Foreign Investment in the United States on April 18 , 2005 and was completed on June 24 . United Defense was merged into the newly created BAE Systems Land and Armaments operating group . BAE Systems announced the purchase of Armor Holdings , a Florida - based manufacturer of military , law enforcement and personnel safety equipment on May 7 , 2007 . Following regulatory and shareholder approval , the acquisition was completed on July 31 , 2007 for approximately $ 4 . 532 billion . BAE has received large contracts as a result of the UDI and Armor Holdings acquisitions ; for example $ 1 . 1bn worth of refurbishment and upgrading work , an order in January 2008 for medium mine - protected vehicles ( MMPVs ) which could earn up to $ 2 . 3bn , and a $ 2 . 24bn contract for mine - resistant ambush - protected ( MRAP ) vehicles in December 2007 . On December 12 , 2007 , BAE announced the acquisition of Dayton , Ohio - based MTC Technologies . The purchase was finalised in June 2008 . Products . The company ' s Electronics , Intelligence & Support business group provides communication , electronic identification , navigation and guidance systems , network - centric warfare solutions and support services . Such products include the Electronic warfare systems for the F - 22 Raptor and F - 35 Lightning II fighters , missile defence systems , countermeasures for both military and commercial aircraft and the HybriDrive propulsion system . BAE Systems Land & Armaments manufactures armoured combat vehicles , tactical wheeled vehicles , naval guns , missile launchers , artillery systems and munitions as well as providing support and upgrade of its products . Organisation . BAE Systems Inc , which was formerly composed of the BAE Systems Land and Armaments and BAE Systems Electronics , Intelligence & Support groups , was reorganized in mid - 2010 . The new structure is composed of two sectors and four business units . The Products Sector is made up of the Electronic Systems and Land & Armaments units , while the Service Sector is composed of the Intelligence & Security and Support Solutions units . Corporate governance . Linda Hudson was appointed Chief Operating Officer , BAE Systems plc , and President and CEO of BAE Systems Inc . on October 26 , 2009 . As per its Special Security Arrangement , BAE Systems Inc . operates as a semi - autonomous business unit within BAE Systems controlled at a local level by American management . In May 2006 the CEO of BAE Systems described the " firewalled " status of BAE Systems Inc : " The British members of the corporate leadership , me included , get to see the financial results ; but many areas of technology , product and programme are not visible to us . . . The SSA effectively allows us to operate in the US as an American company , providing the highest levels of assurance and integrity in some of the most sensitive fields of national security provision . " Members of the board of directors of BAE Systems North America as of August 21 , 2011 are : Michael Chertoff , Bob Fitch , Admiral Robert Natter , Lee Hamilton , Gen JH Binford Peay , Richard Kerr , Dr . William Schneider Jr . , Gen Kenneth Minihan , and Gen Anthony Zinni .