HAMPSHIRE defence giant BAE Systems have bought up military software specialists Aerosystems International in a £14.5m deal.

BAE, which already owned half of the cutting-edge firm, snapped up the final 50 per cent from one of the Isle of Wight's biggest employers, engineering group GKN.

The Yeovil, Somerset-based business's software is used on the Eurofighter and Tornado planes, as well as ships and submarines. It is designed to allow planes and ships to plan their routes and communicate with each other.

It was formed in 1985 as a joint venture between Westland Helicopters and software services company Cap Scientific. After a series of takeovers and mergers on both sides, it later became owned by GKN - which bought out AgustaWestland - and BAE Systems, formerly British Aerospace.

In the last four years it has significantly increased the amount of work it does for the Ministry of Defence, with its systems also used on Black Hawk and Apache helicopters.

A spokesman described the move as a "positive" step and said BAE, which employs thousands of people across Hampshire, including 250 in Millbrook, Southampton, aimed to grow the business in the future.

GKN, which employs 700 people on the Isle of Wight, said the proceeds from the sale would be used to reduce short-term debt.

The company is moving its focus to the core activities of its aviation business. Earlier this year it agreed to sold its 50 per cent stake in helicopter maker AgustaWestland - also based in Yeovil - to Italian engineer Finmeccanica. That deal netted the company £1.06bn but ended Britain's stake in helicopter manufacturing.