British defense giant BAE Systems plc has turned to VT Group plc to create a joint venture, which "will be the U.K.'s premier provider of surface warships and through-life support." BAE will own 55% of the yet-to-be-named JV. As part of the transaction, BAE Systems will sell its current 50% shareholding in the training solutions and support services provider Flagship Training Ltd. to VT for up to £75 million ($154 million), plus interest. The deal is part of VT's strategy to become a pure-play support services and training provider.

According to Jane's Information Group — recently sold to publisher HIS Inc. — based on fiscal year 2005 figures, the JV will have annual revenues in excess of £700 million in addition to a staff of 6,850 divided between the groups.

Get to the announcement from BAE here
See VT’s release

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