Italian defence group Leonardo said on Saturday it decided to get a 25.1percent stake from German military detector manufacturer Hensoldt by buyout firm KKR to get 2-3 euros a share in cash, or just around 606 million euros ($733 million).

The bargain is a part of Leonardo’s technique to strengthen its existence in cyberspace digital whilst trying to divest from organizations that have grown to be non profit core to the Italian state controlled group.

“We’re enthused about the financial commitment in Hensoldt whilst the catalyst for the founding of closer alliance which may enhance our various places from the growing defence electronics economy,” ceo Alessandro Profumo said in an announcement.

Leonardo and Hensoldt already collaborate in ordinary apps such as the Eurofighter Typhoon.

The price comes a month later Leonardo postponed a proposed U.S. record of its electronic equipment unit DRS.

It said on Saturday it might assert a”solid funding structure,” helped by disposals as well as also the DRS record.

Leonardo is now Hensoldt’s biggest investor along side German country bank KfW, that bought a 25.1{4298251308cd288b939effe95b4c029e39df70679b4587e1449e43e4b08368d8} stake in March.

KKR’s vehicle Lux Holding II Sarl will manage a bet of approximately 18 percent, Hensoldt said in another statement.

The trade is anticipated to be finalised in the next half this past year. Upon conclusion Leonardo will indicate two candidates to get Hensoldt’s supervisory board.

Hensoldt this week said KKR was soliciting bids for a 25.1{4298251308cd288b939effe95b4c029e39df70679b4587e1449e43e4b08368d8} stake one among leading European Union builders and it had been in high level discussions with organizations including Leonardo, France’s Thales,” Spain’s Indra and also Sweden’s Saab.

UBS and Deutsche Bank acted as Leonardo’s lead financial advisor and financial advisor, respectively,” it said.