BAE Systems announced today it will acquire defense contractor Armor Holdings for a price that includes $4.14 billion in cash. Rockville, Md.-based BAE Systems, the US subsidiary of London-based BAE Systems plc, agreed to purchase Jacksonville, Fla.-based Armor Holdings for $88 per share. Stock in Armor Holdings opened today at $85.80 per share. Including the assumption of $388 million in debt, the transaction is valued at approximately $4.53 billion, according to BAE Systems. The proposed acquisition will be financed through a combination of a placing of new ordinary shares in BAE Systems and existing internal resources, on May 8, and is not conditional on the completion of the proposed acquisition, the company said. Armor Holdings, which has more than 8000 workers worldwide, makes tactical wheeled vehicles and also provides vehicle and individual armor systems for the military, law enforcement and commercial security businesses. The acquisition, subject to approval by Armor Holdings shareholders, is expected to close in the third quarter. Armor Holdings' aerospace and defense group is based in Arlington, Va. BAE Systems employs about 6500 people in the area. According to the Baltimore Business Journal, company officials said they don't foresee layoffs at Armor Holdings. "On completion of the proposed acquisition it is intended that Armor Holdings will be integrated into BAE Systems Land and Armaments sector," BAE said in a statement. "It is intended that retention agreements will be put in place to address leadership continuity going forward." BAE said the proposed acquisition will strengthen its position in the land-systems arena and will enhance Armor Holdings' ability to offer tactical wheeled vehicle replacement programs in overseas markets. The integration of Armor Holdings into BAE Systems' land and armaments sector is expected to increase the British company's US sales by more than $3 billion. (See also: BAE Systems to Expand in Upstate NY) BAE Systems will supply a key part for the Spanish Navy’s new S80 submarine programme under a contract signed with Navantia SA of Spain. This is the first submarine export order in more than 20 years for the company. BAE Systems announced last week it will supply a key part for the Spanish Navy’s new S80 submarine program under a contract signed with Navantia SA of Spain -- the company's first submarine export order in more than 20 years. Its Submarine Solutions Div. will fabricate and assemble fore and aft pressure hull domes for four diesel-electric S80 submarines in its Barrow-in-Furness, England, shipyard under the terms of the multimillion-pound agreement. BAE will also provide technical support and assistance in pressure hull fabrication to Navantia as the S80 program develops. For more information, visit: www.baesystems.com