Leonardo SpA’s US unit is closing in on the purchase of an American technology firm, people familiar with the matter said, in a move that would bolster the defense contractor’s product capabilities in the world’s largest weapons market.

Arlington, Virginia-based Leonardo DRS Inc. is considering a deal that would value the target in the low hundreds of millions in dollars, the people said, declining to identify the target. They asked not to be identified because the information isn’t public. The potential acquisition provides predictive algorithm services, a technology that uses historical data to forecast future events.