(Yicai Global) Oct. 26 -- Electrical equipment maker Changshu Tianyin Electromechanical Co. [SHE:300342] (CTE) plans to acquire control of a leading Beijing-based defense electronics supplier that provided key parts to projects such as the Beidou Navigation Satellite System and China Aerospace Science and Technology Corp.'s Rainbow unmanned aerial vehicles.

The Jiangsu-based firm said that it signed a letter of intent for acquisition with Beijing Senfe Tech Co.'s (BST) shareholders yesterday and will pay USD34.83 million (CNY231 million) in cash for a 55-percent stake in the latter.

Founded in 2004, BST boasts a product line covering all defense electronics market segment, and its products are used in aircrafts, armored vehicles, vessels, satellite navigation systems and guided weapons. BST supplied core components for the Beidou system's signal receivers and is the sole flight control computer provider for the Chinese-made Rainbow defense UAVs, some of which China exported.

BST is a member of US computer giant Intel Corp.'s [NASDAQ:INTC] Internet of Things Solutions Alliance. It developed a platform for collecting and testing industrial automation data that is on par with its leading American counterparts.

As a Rainbow UAV supplier, BST will help CTE break into the defense export market and improve its technologies, CTE said.