The unit was earmarked for divestiture as part of Bombardier's recapitalization program announced on April 3. The division employs approximately 950 people and provides maintenance, repair, overhaul and technical services for military aircraft.

The unit has contracts with the Canadian Armed Forces, the US Department of Defense and other businesses and international military organizations.

"Military Aviation Services expands L-3's work in aircraft modernization and gives us access to new platforms like the Maritime Helicopter Program, which has been approved by the Canadian Ministry of Defense," said Frank Lanza, chairman and chief executive officer of L-3 Communications.

"With this acquisition, L-3 will be one of the leading providers of aircraft modernization in the industry," Lanza added.

The unit will remain a subcontractor to Bombardier for modifications of its business jet business, and L-3 will be in a position to supply its commercial aviation products as part of its offerings to Bombardier, according to an L-3 statement.

Bombardier earlier this year said it would shed some of its units in an effort to shore up its finances and cope with the global economic slowdown.

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