Posted by- Neelam Mathews
June 29, 2011
Defense and security company Saab announced a definitive agreement to acquire the U.S. company Sensis Corporation (Sensis), a leading provider of air traffic management (ATM) solutions and surveillance technologies, for approximately MUSD 155 (about MSEK 1,008).
In addition, the parties have agreed on a potential earn out payment of maximum MUSD 40 (about MSEK 260) by 2014. The acquisition advances Saab’s strategy to increase its North American presence. It also strengthens the product portfolio within radar, sensors, ATM, and defence systems development.
Sensis is a leading provider of air traffic management (ATM) solutions and surveillance technologies serving the global civil aviation and defence industries.
The acquisition provides a growth platform from which Saab can build on the combined installed base and skills in systems engineering, design and integration. Sensis customers and partners will benefit from Saab’s product portfolio and global support operations.
Sensis will continue operations in the U.S. as a subsidiary within the Saab Group.
"This acquisition is in line with our ambition to focus on selected markets and grow our core business. Sensis has complementing product lines and is well-positioned on several key markets. By combining our product portfolios, we gain a stronger position and broaden our market offering," says Håkan Buskhe, President and CEO, Saab.
“Saab’s defense heritage and Sensis’ history of advanced expeditionary radar design is a powerful combination of legacy radar expertise and next generation radar innovation,” says Jud Gostin, Chairman, President and CEO, Sensis Corporation. “Further, the coupling of Sensis’ and Saab’s Air Traffic Management and civil security portfolios will provide a new level of ATM solutions.”
Sensis has a 26-year history in sensor and system development. The workforce of approximately 600 employees services a global base of more than 60 customers located in more than 35 countries across six continents. Its customers include 54 of the world’s 100 largest airports. The company’s estimated revenues are about MUSD 130 (about MSEK 845) for the fiscal year ending June 2011.
The transaction is pending approval from, among others, competition authorities in the U.S. and closing is expected in the third quarter of 2011.