Ultra Electronics has acquired AEP Networks for around $75m (£48m).

With an initial cash consideration of $57.5m being paid, and a further sum of up to $17.5m to be paid on 31 December, the defence and aerospace company has acquired the CESG-accredited company for its links to the UK government's national technical authority for secure electronic communications.

Ultra's systems, equipment and services are mission-critical to the successful operation of the platforms run by defence, security, transport and energy organisations. The move will add network and cloud-based security technologies, along with hardware security modules for the protection and distribution of cryptographic keys and secure, modular communication systems for voice and data aggregation over multiple bearers.

Rakesh Sharma, chief executive of Ultra, said: “I am very pleased that we have been able to bring AEP into the group. AEP provides important complementary technologies and products to advance Ultra's strategy in the growing cyber security domain.

“AEP is a technology-rich company with strong intellectual property and wide global reach, operating in a fast-growing marketplace.”