BERLIN (AP) — Italian arms manufacturer Leonardo said Saturday that it is buying large stake in Germany company Hensoldt from the U.S. investment firm KKR.

Leonardo said it paid 606 million euros ($733 million) for 25.1% of shares in Hensoldt, which makes military electronics.

Hensoldt was spun out from Airbus in 2017 and purchased by KKR. The investment firm has since sold a 25.1% blocking minority to the German government, which has deemed Hensoldt’s products essential to national security.

Based in Taufkirchen near Munich, Hensoldt provides radar systems, sensors and cryptography for military purposes.

The deal still requires regulatory approval.