BAE SYSTEMS became the sole owner of a business specialising in software for the defence industry after buying GKN's 50 per cent stake for £14.5m.

The UK company already owns half of Aerosystems International, whose designs are used on the Eurofighter and Tornado planes, ships and submarines.

Engineering group GKN is selling its half-stake in the venture, which employs most of its 400 staff in the UK, so it can focus on its core aviation business.

Software by the Yeovil, Somerset-based business allows planes and ships to navigate and communicate with each other.

The company, which also has operations in York and Worcester, was formed in 1985 as a joint venture between Westland helicopters and software services company Cap Scientific. After a series of takeovers and mergers, it later became owned by GKN, which bought AgustaWestland and BAE Systems, formerly British Aerospace.

BAE Systems said that Aerosystems International would continue to operate as normal and become part of its customer solutions and support business.