Finmeccanica buys DRS for $4B in defense deal

"Thanks to this accord Finmeccanica assumes a greater global importance in a market where the margins are greater than domestically," Bosio said.

Finmeccanica builds helicopters, civil and military aircraft, satellites, missiles and defense electronics.

DRS is a leading supplier of integrated products, services and support to military forces, government agencies and prime contractors worldwide.

Finmeccanica, which is 34 percent owned by the Italian government, has 60,000 employees worldwide, 2,100 of those in North America. DRS employs 10,000.

"This investment in DRS -with an increased emphasis on research and development -will mean the combined company will be able to compete for and win additional contracts around the world, accelerating growth and expanding opportunities at our facilities in the U.S.," said Mark S. Newman, chairman of the board, president and chief executive officer of DRS.

Also on Tuesday, Finmeccanica said it had bought about 11.1 percent of Eurotech SpA for 4.6 euros ($7.10) per share, amounting to around 18.1 million euros ($27.93 million).

Eurotech is a leading producer of miniaturized and high-performance computers.

Finmeccanica said in a statement that the entrance into Eurotech's share capital will help it create "significant growth in the U.S. and Japan."

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AP Business Writer Colleen Barry contributed to this report from Milan.