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State Department OKs $1.7B Aegis Combat System Sale to Canada

The State Department has approved Canada’s request to buy from the U.S. government the Aegis Combat System built by Lockheed Martin (NYSE: LMT) and associated equipment through a potential $1.7 billion foreign military sales deal.

Lockheed’s rotary and mission systems unit will be the primary contractor on the proposed sale of four Aegis shipsets along with a computer program for the weapon system, solid state radar components, vertical launchers and a Cooperative Engagement Capability platform, the Defense Security Cooperation Agency said Monday.

DSCA noted that implementation of the deal would allow Canada to equip its new surface combatant ship with the combat system.

The Aegis system is designed to help naval customers track, engage and strike targets.

Multiple vendors that work with the U.S. Navy could supply components and provide engineering services if the service branch implements the effort, DSCA noted.

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