European aerospace giant Airbus Group is to sell its Defence Electronics business to private equity firm KKR for €1.1bn (£856m)
Airbus said the deal should be finalised in the first quarter of 2017, and that it may keep a minority stake.
The firm's Bernhard Gerwert said the division business would "strongly develop" under KKR.
Airbus is shedding several arms to focus its defence division on missiles, warplanes, launchers and satellites.
In total it hopes to dispose of assets with combined annual revenue of some €2bn.
The Defence Electronics unit, part of the group's Airbus Defence and Space arm, has a global staff of 4,000 and annual revenues of roughly €1bn.
Its areas of expertise include military sensors, electronic warfare, avionics and optronics.