The British subsidiary of Raytheon and the government's Home Office have settled their protracted dispute over cancellation of a contract.

Under the settlement announced Friday, The United Kingdom Home Office will pay Raytheon Systems Ltd., aka Raytheon UK, about $223.4 million for the resolution of all claims and counter-claims of both parties that were part of an arbitration process of the eBorders contract.

The contract was to give Britain electronic border security capabilities and was dropped by the Home Office in 2010. Last August an arbitration tribunal found that the U.K. Home Office had unlawfully terminated the contract and denied all Home Office claims against RSL.

The tribunal also awarded RSL damages for breach of contract and other compensation totaling about $277 million plus interest, a decision the Home Office challenged.

Raytheon said a London High Court judge later upheld part of the Home Office challenge but stayed the decision for further appeals.

"To avoid further uncertainty and the expense of more protracted litigation, and to strengthen their important customer relationship with the British government, Raytheon and RSL have decided to put this matter behind them," Raytheon in the United States said.