UK defence contractor BAE Systems has signed a multi-billion dollar deal to buy Ball Aerospace for £4.4 billion.

BAE, which has a base in Gloucester, said it would buy Ball Aerospace from the Ball Corporation, gaining it more than 5,200 new employees and a Colorado headquarters.

Ball Aerospace supplies parts to the James Webb telescope and the US's fighter jets.

Commenting on today's announcement, Charles Woodburn, chief executive of BAE Systems, said: "The proposed acquisition of Ball Aerospace is a unique opportunity to add a high quality, fast growing technology focused business with significant capabilities to our core business that is performing strongly and well positioned for sustained growth.

"It's rare that a business of this quality, scale and complementary capabilities, with strong growth prospects and a close fit to our strategy, becomes available.

"The strategic and financial rationale is compelling, as we continue to focus on areas of high priority defence and Intelligence spending, strengthening our world class multi-domain portfolio and enhancing our value compounding model of top line growth, margin expansion and high cash generation.

"We couldn't be more pleased to have reached this agreement and we look forward to welcoming the employees of Ball Aerospace to BAE Systems as we work together to support our customers and create value for shareholders."