Rome - Italian aerospace and defence group Finmeccanica announced Tuesday it is to buy US military contractor DRS Technologies Inc. for an estimated 4 billion dollars.

The deal with the Parsippany, New Jersey-based DRS will allow Finmeccanica to become a "key player" in the US defence industry, the Italian group said in a statement.

The Rome-based Finmeccanica will pay 81 dollars per share in cash, representing a 32 per cent premium over DRS's 30 day average stock price, the statement said. Finmeccanica will also cover 1.2 billion dollars in net debt.

The deal will offer DRS the chance to seek new opportunities abroad while extending its US operations, the statement said.

DRS is to retain its Parsippany headquarters and current US-staffed management, a condition, analysts say, allowing it to continue complying with US security clearance regulations, thus opening up the lucrative US defence market for Finmeccanica.

DRS supplies the US military and intelligence agencies with a variety of high-technology products, including thermal imaging devices, combat display workstations, power systems, and air combat training systems.

Finmeccanica shares rose 1.2 per cent to 21.62 euros (33.36 dollars) in Milan following news of the deal.

Finmeccanica which is 34 per cent owned by the Italian state, builds helicopters, civil and military aircraft, satellites, missiles and defence electronics.

Also on Tuesday, Finmeccanica announced it had bought about 11.1 per cent of Italian company Eurotech - some 3.9 million shares at a price of 4.60 euros per share.

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 US and Japan." (dpa)