Britain’s BAE Systems has completed its acquisition of the intelligence services businesses of L-1 Identity Solutions [ID], clearing a hurdle for the conclusion of the sale of the rest of L-1 to France’s Safran Group.

BAE paid $295.8 million in cash for several L-1 business units and is assuming $7.2 million in obligations.

L-1 is using the proceeds of the BAE purchase to repay outstanding indebtedness under its credit facility, which will leave the company with a balance of less than $50 million.

L-1 is now comprised of a number of identity solutions businesses in the areas of secure credentialing, biometrics, and access control and enrollment services. The company still expects its merger with Safran to close in the first quarter of 2011, subject to approval by Committee on Foreign Investment in the United States.