UPDATE 1-BAE Systems to buy MTC Tech for $450 million

(Adds detail on MTC)

NEW YORK, Dec 21 (Reuters) - U.S. defense and intelligence services firm MTC Technologies Inc MTCT.O said on Friday it has signed a definitive merger agreement to be acquired by BAE Systems Inc. (BAES.L) for $450 million in cash, or $24 per share.

The acquisition, which also includes the assumption of debt, is expected to close in the first half of 2008, MTC said.

Dayton, Ohio-based MTC, which employs about 3,000 people, is a provider of aircraft modernization and maintenance services. It also provides logistics services to the U.S. Department of Defense and to U.S. national security agencies.

Raymond James is serving as financial advisor to MTC, while Stifel Nicolaus provided a fairness opinion to its board.

Ahead of the announcement, MTC shares gained 4.3 percent to close at $17.78 on Nasdaq. (Reporting by Nick Zieminski, editing by Richard Chang, Gary Hill)