Space technology company Orbital Sciences Corp will sell its Fairchild Defense electronics business to a US subsidiary of Smiths Industries for $100 million in cash.

Fairchild Defense's products are used by the US Armed Forces and militaries from over 25 other countries on platforms such as the A-10, B-1, B-52, F-14, F-16 and F-22 aircraft as well as on Mirage, Hawk and Jaguar aircraft and Bradley, MLRS and Crusader land combat vehicles.

The transaction is expected to close later this month. Orbital says it anticipates using net proceeds from the divestiture to reduce bank debt and increase its overall liquidity.

Orbital acquired the Fairchild Defense unit in 1994 as part of its purchase of Fairchild Space and Defense Corporation, based in Germantown, Maryland. Orbital subsequently merged the Fairchild Space business with its own satellite design and manufacturing division and operated Fairchild Defense as part of the company's Electronics and Sensor Systems Group, which today has operations in Germantown and Columbia, Maryland and Pomona, California.

With revenues of $76 million in 1999, Fairchild Defense currently employs about 420 people, all of whom are expected to remain with the business unit after its sale to Smiths.