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10 Jan 25. Rheinmetall acquires majority share in blackned GmbH. Rheinmetall Electronics GmbH, based in Bremen, has acquired another 11% of the shares in the Bavarian software developer blackned GmbH by means of a share purchase agreement. With this acquisition, Rheinmetall intends to control 51% and thus the majority of blackned. The Bremen-based Rheinmetall subsidiary has so far held a 40% stake in blackned. The transaction is still subject to various conditions precedent and also requires approval by the German Federal Cartel Office. Founded in 2009 and based in Heimertingen in Bavaria, blackned specialises in software for the digitalisation of armed forces. The company currently has around 200 employees and is growing rapidly. By increasing its shares in blackned, Rheinmetall is underlining the importance of digitalisation with modern IT architectures for the defence contractor.
In December, Rheinmetall and blackned jointly secured a major order as part of the digitalisation of the Bundeswehr. The two companies are to work together in order to integrate the IT systems of all vehicle and platform systems of the land forces as part of the D-LBO project. Rheinmetall will account for around €730m of the contract volume, with blackned contributing around €470m. The new technology is to be integrated into more than 10,000 combat and support vehicles of the Bundeswehr by mid-2030.
Armin Papperger, Chairman of the Executive Board of Rheinmetall AG: “The digitalisation of the armed forces is advancing, also internationally. We want to play a leading role here and are involved in corresponding projects, for example in Australia, the United Kingdom and Hungary. The fact that we are on the right track with digitalisation and by offering convincing solutions is demonstrated by our joint success in the major D-LBO project for the Bundeswehr.”
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09 Jan 25. General Dynamics is a global aerospace and defense company that specializes in high-end design, engineering and manufacturing to deliver state-of-the-art solutions to its customers. The company offers a broad portfolio of products and services in business aviation; ship construction and repair; land combat vehicles, weapons systems and munitions; and technology products and services.
Total company revenue was $42.34bn in 2023, up 7.3% from $39.4bn in 2022 which was up 2.4% from 2021. Compared to other defense and aerospace companies, General Dynamics had a relatively modest negative impact on its financial performance due to the global pandemic. Total operating profit was $4.272 bn in 2023, up 0.8% from $4.211bn in 2022 and still down sharply from the $4.57bn achieved in 2019. The company’s operating margin has steadily declined from a high of 13.5% in 2017 to 10% in 2023. Long-term debt did rise sharply following the acquisition of CSRA in 2018, increasing to $11.4bn in that year versus only $4bn in 2017. Except for an increase during the height of the pandemic, management has reduced long-term debt to $8.8bn by the end of 2023.
The company consists of 10 business units, which are organized into four operating segments: Aerospace, Combat Systems, Marine Systems and Technologies.
The Technologies segment is organized into two business units — Information Technology (IT) and Mission Systems. IT modernizes large-scale IT enterprises and deploys the latest technologies to optimize and protect customer networks, data and information. Mission Systems offers solutions across multiple domains and produces a unique combination of products and capabilities that are built for essential C5ISR applications.By the end of 2023, the company’s total Technologies segment accounted for $12.922bn of revenues. Combining $8.459bn from information technology services and $4.463bn from C5IS solutions.
By the end of 2023, the company’s Marine Systems segment accounted for $12.461bn of revenues. Combining $8.631bn from nuclear powered submarines, $2.698bn from surface ships and $1.132bn from repair services and other. The Marine Systems segment is a leading designer and builder of nuclear-powered submarines and a leader in surface combatants and auxiliary ship design and construction for the U.S. Navy. It consists of three business units: Electric Boat, Bath Iron Works and NASSCO.
Combat Systems segment is a manufacturer and integrator of land combat solutions worldwide, including wheeled and tracked combat vehicles, weapons systems and munitions. The segment consists of three business units: Land Systems, European Land Systems (ELS), and Ordnance and Tactical Systems (OTS). By the end of 2023, the company’s Combat Systems segment accounted for $8.268bn in revenues. Combining $5.036bn from military vehicles, $2.442bn from weapons systems, armaments and munitions and $790m from engineering and other services.
The Aerospace segment consists of the Gulfstream and Jet Aviation business units. General Dynamics designs, manufactures and services an advanced line of business jets. By the end of 2023, the company’s Aerospace segment accounted for $8.621bn of revenues. Combining $5.710 bn from aircraft manufacturing and $2.911 bn from aircraft services and completions. While manufacturing has been soft for the last three years, services have grown at or just below double-digit annual rates. (Source: Teal Group)
08 Jan 25. Septentrio Acquired by Hexagon for Pioneering GNSS Technologies. Hexagon will acquire Septentrio for its GNSS platform, and to ensure greater accessibility to high-accuracy, high-performance positioning technology with low SWaP characteristics. Leading OEM provider of GNSS technologies Septentrio NV will be acquired by Hexagon after forming an agreement, aiming to drive innovation and expand the market reach of Resilient Assured Positioning solutions. Combining Septentrio’s pioneering GNSS platform with Hexagon’s extensive positioning portfolio, including sensor fusion, anti-jamming, correction services and perception technologies, will enable cutting-edge solutions for diverse markets and applications. This will ensure greater accessibility to high-accuracy and high-performance positioning technology with low SWaP (Size, Weight and Power) characteristics. This will accelerate the adoption of autonomous systems in existing markets and address the needs of emerging high growth segments like robotics, UAVs, autonomy and other mission-critical applications.
Septentrio has built its reputation on innovation and customer focus and will together with Hexagon continue to operate its business model of supplying state of the art GNSS technology and products to its large base of industry leading OEM customers.
Septentrio, headquartered in Leuven, Belgium, has around 150 employees, and is expected to generate revenues of over 50 MEUR in 2024, with strong growth rates and margins in line with the Hexagon Group.
Septentrio will be reported within Hexagon’s Autonomous Solutions division. Completion of the transaction is subject to regulatory approvals and other customary conditions and is expected to be finalised in the first half of 2025.
Norbert Hanke, interim President and CEO at Hexagon AB, commented, “The combination of Hexagon and Septentrio will transform the positioning industry across existing and new markets, setting new standards for the accuracy, resilience and scalability of positioning technologies, necessary to support and accelerate the journey towards full autonomy.” (Source: https://www.defenseadvancement.com/)
08 Jan 25. Proteus Enterprises (“Proteus”), a Maryland-based Aerospace, Defense and Government Services holding company, today announced that it acquired Ricardo Defense, Inc. (“Ricardo Defense” or the “Company”) in partnership with Gladstone Investment Corporation (NASDAQ: GAIN). Financial terms were not disclosed.
Headquartered in Troy, MI, with operations in California, Texas, Alabama, and overseas, Ricardo is an industry leader working to develop engineering and product solutions for US Army vehicle and logistics programs.
Pierre Chao and Greg Bowie, Proteus co-founders, said, “The Ricardo Defense team has done a remarkable job providing innovative technical and product solutions for US Army and DoD customers. Ricardo Defense’s experienced leadership team has grown the Company significantly to date by developing new capabilities and customer relationships, including the ABS/ESC system for the HMMWV. In bringing US ownership and access to capital, we look forward to partnering with management to grow the company while building a business focused on solving the defense customer’s most challenging problems.”
Ricardo President, Chet Gryzcan stated, “I am proud of our employees and what our team has built over the last 10 years, and we are excited to expand upon our success as we partner with Proteus. We felt an immediate synergy with the Proteus team, and we look forward to leveraging Proteus’s knowledge and expertise as an experienced government services and technology investor to expand our capabilities and continue delivering solutions that enhance warfighter effectiveness.”
Pete Roney, Proteus co-founder and incoming CEO of Ricardo Defense added, “We are beyond excited to join the Ricardo Defense team in providing mission critical services and solutions to our Nation’s military services. I am looking forward to working with Ricardo Defense’s exceptional team to help position the business for continued growth and greater scale in the future.”
Holland & Knight served as legal counsel to Proteus; Squire Patton Boggs served as legal counsel to Ricardo Plc.; and Houlihan Lokey served as financial advisor to Ricardo Plc. (Source: PR Newswire)
European defence stocks rise after Trump’s NATO comments. European defence sector stocks rose on Wednesday after U.S. President-elect Donald Trump called for higher spending from NATO allies.
All leading European arms makers, including Rheinmetall, Dassault Aviation, Leonardo and Saab, were up by 2-3%, while the pan-European defence index, was 1% higher by 0910 GMT.
Stifel analysts highlighted Trump’s comment that European NATO members should spend 5% of their GDP on the alliance’s defence, up from the current 2% threshold.
At a Tuesday evening press conference at his Mar-a-Lago residence in Florida, Trump said allies, particularly Germany, spend too little on defence, adding that “they can all afford it”.
Friedrich Merz, leader of Germany’s opposition Christian Democrats, on Wednesday welcomed the idea of more defence spending but dismissed the wrangling over how much to specifically raise the NATO target by as “irrelevant”. (Source: Google/Reuters)
07 Jan 25. KBR (NYSE: KBR) today announced segment reporting updates and executive appointments focused on advancing the Company’s strategic direction. These updates include changes previously approved by KBR’s Board of Directors and disclosed in a Form 8-K filed on December 19, 2024.
“As KBR continues to scale and expand capabilities, we are realigning our portfolio to streamline operations, reduce complexity, and optimize our processes,” said Stuart Bradie, KBR President and CEO. “During 2024, we eliminated substantial costs and moved necessary support into the segments to enable greater self-sufficiency. We are already seeing the benefits of these initiatives, which have broken down historical silos, created cross-team collaboration, and opened a larger pipeline of opportunities globally. We also effected leadership changes to facilitate continued strong execution and greater value creation. These deliberate moves will ensure that our capabilities and talent are best aligned with our customers, help us remain cost competitive, and accelerate our progress toward achieving our strategic objectives, including maximizing shareholder value.”
Segment Realignment
KBR comprises two operating business segments: Government Solutions (GS) and Sustainable Technology Solutions (STS). As part of the segment realignment, GS has been renamed Mission Technology Solutions (MTS), reflecting KBR’s leading-edge mission critical capabilities spanning space, defense, national security, and its expanding commercial end markets. Sustainable Technology Solutions retains its name. The legacy GS International business unit has been eliminated and its elements integrated into both MTS and STS. Both segments will continue to operate globally, serving government and commercial customers.
The realigned organization is not effective until fiscal year 2025. For investor convenience, selected proforma financial information (under the realigned organization) for the prior 11 reported quarters will be posted on the Investor Relations section of KBR’s website at investors.kbr.com. The fourth quarter of fiscal year 2024 will be added to this supplemental schedule once it is reported in February 2025. KBR’s 2025 Forms 10-Q and Form 10-K will include comparable historical periods and reflect the realigned organization.
Executive Appointments
On December 19, 2024, KBR announced executive appointments in support of advancing its strategic direction:
* Byron Bright, currently President, Government Solutions U.S., has been appointed to serve in KBR’s newly created Chief Operating Officer (COO) role, effective May 2025. As COO, he will lead both segments with Jay Ibrahim, President, Sustainable Technology Solutions, reporting to him. Additional Mission Technology Solutions leadership appointments will be made in the coming months.
* Bright, 50, joined KBR in 2010 and has served in his current position since June 2020. Bright brings extensive operational experience and deep technical expertise, with prior roles in government services and the U.S. Air Force.
Bradie commented, “Byron has demonstrated exceptional leadership in his current role. As COO, he will provide focused operational oversight to ensure that KBR continues to win the right work and deliver value as we execute our strategic initiatives. I am extremely confident in Byron’s ability to consistently deliver results across the enterprise, and I look forward to partnering with him in his new leadership role.”
* KBR Chair, General Lester L. Lyles, notified the Board of Directors of his decision to retire from service effective post KBR’s 2025 Annual Meeting of Stockholders. General Lyles has served on the Board since 2007 and as Chair since 2019.
* The Board appointed Bradie to serve as Chair effective following the 2025 Annual Meeting.
* An Independent Lead Director will be appointed ahead of the 2025 Annual Meeting.
Bradie commented, “General Lyles has been an invaluable member of our Board and instrumental in guiding KBR’s transformation into a global, diversified technology solutions leader. We are grateful for Les’s leadership and thank him for his 18 years of dedicated service. I am honored to take on the role of Chair and thank the Board for their confidence in me. I look forward to continuing to work with our Board and leadership team to execute our strategy and deliver continued stakeholder value.”
Financial Targets
KBR is reiterating its 2027 financial targets, introduced at its May 2024 Investor Day which are based on 2023 baseline year.
Specifically, the company expects to achieve:
* KBR Consolidated: Revenues of $11.5 bn; Adj. EBITDA of $1.15+ bn; Adj. EBITDA Margin of 10% – 11%, and Operating Cash Flow of $700+ m
* MTS: Revenue CAGR of 11% – 15% and Adj. EBITDA Margin of 9% – 10%
* STS: Revenue CAGR of 11% – 15% and Adj. EBITDA Margin of ~20%
Bradie concluded, “The outlook for KBR is exciting and we are well positioned with our unique capabilities and talented teams to capture outsized demand driven by global megatrends. The structural changes communicated today provide us greater strategic flexibility as we continue to build strength and scale across the organization. We remain focused on leveraging our unique ONE KBR capabilities, enabled by our digital accelerators, to deliver best-in-class solutions to our global customers.”
07 Jan 25. Fujitsu’s decision to restrict bidding for UK government contracts after the Post Office Horizon scandal has wiped out the value of goodwill on the balance sheet of Fujitsu Services Holdings. (Source: FT.com)
07 Jan 25. Houlihan Lokey Advises Ricardo Defense. Houlihan Lokey announced that Ricardo Defense, a subsidiary of Ricardo PLC (LON:RCDO), has been acquired by Proteus Enterprises LLC (Proteus) and Gladstone Investment Corp. (NASDAQ:GAIN). The transaction closed on December 31, 2024. Houlihan Lokey served as the exclusive financial advisor to Ricardo Defense. Michigan-based Ricardo Defense is an engineering services and systems integration firm specializing in helping Department of Defense (DoD) customers overcome technical challenges in modernizing, managing, and maintaining military fleets. With an embedded presence at 20 DoD locations, Ricardo Defense provides seamless support to longstanding customers by leveraging advanced expertise in design, engineering, manufacturing, and integration. Among its comprehensive solutions, Ricardo Defense provides proprietary antilock braking and electronic stability control systems for High Mobility Multipurpose Wheeled Vehicles (HMMWVs). Proteus makes control investments in middle-market aerospace, defense, and government services companies with the strategic goal of building the next generation of mid-tier competitors in the sector. The Proteus team has spent a lifetime investing in, supporting, and operating aerospace, defense, and government services businesses and has a deep passion for the industry. Gladstone Investment Corp. is a publicly traded business development company that seeks to make equity and secured debt investments in lower-middle-market businesses in connection with acquisitions, changes in control, and recapitalizations. Houlihan Lokey served as the exclusive financial advisor to Ricardo Defense. This transaction exemplifies the continued success of Houlihan Lokey’s Aerospace, Defense & Government practice within the engineered solutions and defense services sector. Since 2020, the team has closed more than 70 transactions worth over $13bn in enterprise value. With a staff of approximately 20 financial professionals, Houlihan Lokey’s Aerospace, Defense & Government practice is among the largest dedicated industry banking groups worldwide. In 2023, Houlihan Lokey’s Industrials Group was ranked as the No. 1 M&A advisor for global industrials transactions under $1 bn, according to LSEG (formerly Refinitiv).* If you would like more information about Houlihan Lokey or have questions regarding the firm’s role in this transaction, please contact the team members listed below. *Excludes accounting firms and brokers.
07 Jan 25. Patria’s professional civilian pilot training subsidiary acquired by Airways Aviation. Patria has signed an agreement with Airways Aviation Group (‘Airways Aviation’) on them acquiring the entire share capital of its subsidiary Patria Pilot Training Oy (‘Patria’s Pilot Training’). As of 1 February, 2025, all employees, operations and ongoing training courses of Patria’s Pilot Training will be transferred to Airways Aviation.
Patria’s military pilot training activities will not be impacted by these changes.
Significant efforts were made to find an external successor for the operations since the change negotiations were held in Patria’s Pilot Training operations on its possible termination during 2025 in the summer of 2024. The function is mainly focused on arranging professional civilian pilot training in Pirkkala in Tampere and Vantaa, Finland and in Córdoba in Spain. These operations employ 30 people in Finland and 5 in Spain. Airways Aviation Group with over 45 years of experience is a privately owned aviation education and training organization with its headquarters in the UAE (Dubai) and active operations in more than 10 countries in Europe, Africa, Middle East and Asia-Pacific. It owns and operates one of the world’s largest fleets of training aircraft, including Europe’s largest fleet of Diamond DA40 and DA42 aircraft. The group provides high-quality education and training pathways for Airline Pilots, Military Pilots, Cabin Crew, Ground Handlers, Aircraft Maintenance Technicians, and University-qualified Administrators and Managers, boasting a proven track record in aviation training, having successfully trained over 10,000 pilots, 14,000 cabin crew and 20,000 maintenance technicians and ground staff. Patria’s Pilot Training operations will now be fully integrated into Airways Aviation’s global training network and will be rebranded as Airways Aviation Nordic, expanding the group’s footprint in the region.
06 Jan 25. Adelaide-based IoT firm Myriota raises $50m. Internet of things business Myriota has raised $50m, which it says will be used to add 100 jobs and enhance its technology. The funding consists of a $25m equity investment from the federal government’s National Reconstruction Fund and a cash injection from venture capital partners Main Sequence and investors, including InterValley Ventures. Myriota products connect small devices on the ground to nanosatellites in space. It allows, for example, farmers to track their animals remotely or authorities to monitor water quality in hard-to-reach places.
“These investments in Myriota will support our hyper-growth and continued role as a leader in democratised satellite connectivity,” Myriota CEO Ben Cade said.
“We strive to enable solutions that have immediate benefit from just a single, out-of-the-box deployment on a small farm, all the way through to a large enterprise deploying tens of thousands of sensors across all their locations.”
The Australian federal government established the National Reconstruction Fund Corporation (NRFC) to invest $15 bn in seven priority areas of the economy. It’s governed by an independent board appointed by the Minister for Industry and Science and the Minister for Finance.
“South Australia is helping the country to not only rebuild its manufacturing muscle but sharpen its edge with new technologies and industries like what we’re seeing at Myriota,” Science Minister Ed Husic said.
“In a country as vast and remote as ours, communications and connectivity is absolutely crucial. Backing investments like this is pivotal to achieving that.”
Myriota’s success comes weeks after fellow Australian nanosatellite firm Fleet Space Technologies raised a further $150 m from investors. The rare “series D” funding round is a dramatic increase from the $5m, $35m and $50m brought in through its A, B and C rounds, respectively. The company’s extraordinary rise has been led by its satellites that can detect minerals underground from space. The technology effectively allows mining companies to both speed up the hunt for minerals and reduce costs by lowering the need for invasive land surveying.
“ExoSphere” has led Fleet to be named one of Australia’s fastest-growing companies, boasting clients such as Rio Tinto, Barrick Gold, and Core Lithium.
It has recently expanded its global footprint to include the US, Canada, Chile, and Luxembourg and now employs more than 130 people. Aside from mineral detection, the firm is also creating a device known as SPIDER that can detect minerals on the moon’s south pole. (Source: Space Connect)
07 Jan 25. Western rating agencies, banks and pension funds are being “stupid” in shunning defence investments, one of Nato’s most senior officials has warned. (Source: FT.com)
06 Jan 25. Ligado files Chapter 11, commences restructuring to slash debt burden. Meanwhile, the company said it has no intentions of dropping its lawsuit against the federal government over L-band spectrum use. Ligado Networks today announced it has filed for Chapter 11 bankruptcy and is putting in place a restructuring plan that the company says will reduce its current debt load of $8.6bn to approximately $1.2bn — in large part financed by a deal with satellite-to-phone company AST SpaceMobile. In addition, creditors holding some 88 percent of the firm’s debt have agreed under the restructuring plan “to provide $115m of additional incremental financing to fund Ligado during the restructuring process,” the Ligado press release explained. The bankruptcy, filed in the US Bankruptcy Court for the District of Delaware, is itself not a surprise. The company has been signaling that might be an option since last year when it sued the Defense and Commerce Departments for allegedly “seizing” its L-band spectrum license. That license was granted by the Federal Communications Commission (FCC) in 2020, but the DoD, Commerce and a number of other government agencies have been protesting the decision ever since, arguing that Ligado’s plan to use that spectrum for cellular communications rather than traditional satellite communications would dangerously interfere with GPS signals widely used by the military, commercial aviation and myriad other industries for positioning, timing and navigation. Ligado has contested that claim. The deal with AST calls for the firm to lease 45 MHz of Ligado’s mid-band spectrum — the same spectrum at the center of the DoD controversy — for use by its satellites in low Earth orbit providing connectivity with cellular telephones. That was something of a surprise move for AST, according to veteran telecommunications consultant Tim Farrar.
“The transaction associated with [Ligado’s bankruptcy] is fairly unexpected, in terms of AST agreeing to lease their spectrum, because AST has been all about partnerships with cellular operators and using terrestrial spectrum … and building satellites to operate in lower frequencies,” he said. “It’s really a sort of 180 degree turn for AST to basically go and move to MSS [mobile satellite service] spectrum and move to these higher frequencies, where, as they had said they were much better off with the low frequencies which were going to penetrate buildings.”
According to Ligado’s press release, AST “has agreed to provide Ligado, subject to certain conditions precedent, with approximately $113 m of AST SpaceMobile warrants, and usage rights payments to fund Ligado’s payments under certain spectrum agreements. Additionally, Ligado will receive economic participation in AST SpaceMobile’s direct-to-device business in the U.S. and Canada.”
For its part, AST in a press release today said the deal would help the company expand its services.
“Adding premium lower mid-band spectrum access in the United States to the AST SpaceMobile network gives us long-term access to a large block of a scarce resource, significantly enhancing our planned space-based cellular broadband offering,” said Abel Avellan, Chairman and CEO at AST SpaceMobile.
Farrar said the likelihood is that Ligado will “hive off” this part of its business as a sub-unit while keeping its one satellite in geosynchronous orbit active in order to maintain its spectrum license in order “to continue to make their lease payments to Viasat,” which
According to the Ligado release, the company had been for the past year making an effort “to secure a comprehensive resolution with satellite communications company Viasat to restructure Ligado’s significant payment obligations to Inmarsat, which Viasat acquired in 2023.” Viasat had been planning to partner with Ligado on satellite-to-cell services.
Another Coming Twist With Trump?
Meanwhile, the company said it has no intentions of dropping its lawsuit against the federal government — which, if won, could also be a source of income to pay off debtors.
“Ligado will continue to vigorously prosecute its litigation against the U.S. government to enforce its constitutional right to just compensation for the government’s unlawful taking of Ligado’s licensed L Band spectrum,” Doug Smith, president and CEO, said in the firm’s press release.
But that effort is likely to come with a twist, said Farrar, who predicted that Ligado will also pursue an effort to come to an out-of-court settlement with the incoming Trump administration. During Trump’s first term, federal officials leaned strongly into efforts by the mobile telecom industry to take over spectrum traditionally used by government agencies and satellite firms for use by developing 5G networks. Indeed, Trump’s FCC Chair nominee, Brendon Carr, along with the rest of the FCC, in 2020 voted to support Ligado’s application, and he was a vocal supporter of opening up spectrum for economic benefits.
However, Farrar said that there are myriad complicating factors at play both with regard to the fate of the lawsuit and the conclusion of Ligado’s restructuring plan.
“The question is, is this new administration going to be willing to settle that lawsuit?” he asked. And that may depend, he added, on whether new Trump advisor Elon Musk “is going to weigh in as a example of this not being government efficiency at its finest? … The problem is if Elon Musk weighs in, because AST is obviously a competitor with Starlink, then all bets are off.”
At the moment Musk’s SpaceX, which operates the Starlink satellites, has been focusing on making alliances with terrestrial wireless providers for satellite-to-phone services, with an agreement already in play with T-Mobile. But as AST and others companies move to instead use spectrum allocated to satellite rather than wireless communications, SpaceX will need to decide whether it also wants to pivot, Farrar said.
Further, he explained that government agencies including the FCC have to approve the Ligado/AST deal. And that may be impacted by the fact that Commerce’s National Telecommunications and Information Administration (NTIA) on Dec. 17 opened a new study on potential interference from direct-to-device networks with GPS signals that has implications for the Ligado case. It is unclear when that study will be completed; industry representatives have until the end of this month to make initial comments on a series of NTIA questions.
For NTIA, which coordinates spectrum usage by federal agencies including by DoD, there is a conundrum at play with regard to the impending “direct to device” boom. On one hand, the Pentagon and other agencies are worried about GPS interference, but on the other hand, DoD in particular is itching to gain the benefits of secure satellite connections to phones and other handheld devices for use behind enemy lines.
“This is not something that is going to be solved in a few days or a few weeks. This is going to take months, if not even a year or more,” Farrar summed up. (Source: Breaking Defense.com)
06 Jan 25. Houlihan Lokey Advises TEKEVER. Houlihan Lokey announced that TEKEVER, Europe’s leader in AI-centric unmanned aerial systems, has successfully completed a €70m growth equity raise. The strategic growth equity round was led by Baillie Gifford and included participation from the NATO Innovation Fund, the U.K.’s National Security Strategic Investment Fund (NSSIF), and Crescent Cove Advisors LP, among others. The transaction closed on 25 October 2024. TEKEVER is Europe’s leader in AI-centric unmanned aerial systems (UAS) serving both military and commercial end markets. The company designs and produces highly differentiated unmanned aircraft and offers a managed intelligence, surveillance, and reconnaissance (ISR) service to its global customer base. TEKEVER’s vertically integrated business model, based on deep expertise in both hardware and software, enables the company to deliver unmatched results for its customers and respond to rapidly evolving mission demands. The Series B round of €70m was led by Baillie Gifford and supported by strategic investors, including the NATO Innovation Fund (NIF), the U.K.’s NSSIF, Crescent Cove Advisors LP, Iberis Capital, and Cedrus Capital. Together, the investor group brings unmatched expertise and global perspectives, helping TEKEVER drive forward its vision to redefine security and defence.
TEKEVER will use the investment to accelerate R&D focused on enhancing and developing cutting-edge UAS technologies, expanding global production, delivery, and support to meet growing demand, and strengthening its position as a trusted partner in global security and defence markets. Houlihan Lokey served as the lead financial advisor to TEKEVER on its Series B fundraising. This transaction underscores Houlihan Lokey’s expertise and leadership in the global Aerospace & Defense (A&D) sector and private capital markets, marking a significant milestone in the rapidly growing defense technology sector. It also highlights the firm’s ability to deliver exceptional outcomes through collaboration across its A&D practice, Iberian network, and Equity Private Placement capability in complex transactions.
06 Jan 25. Booz Allen Agrees to Pay $15.875m to Settle False Claims Act Allegations. The U.S. Department of Justice (DOJ) has announced that Booz Allen Hamilton Holding Corporation (Booz Allen) has agreed to pay the United States $15,875,000 to resolve allegations that Booz Allen Hamilton Engineering Services LLC (BES), a wholly owned subsidiary of Booz Allen, violated the False Claims Act by knowingly submitting fraudulent claims to the United States in connection with a General Services Administration (GSA) task order to supply computer military training simulators and systems to Department of Defense (DoD) agencies, including the Air Force. Booz Allen, which is headquartered in McLean, Virginia, provides a range of management, consulting and engineering services to the government. BES was an engineering services firm located in Annapolis Junction, Maryland, with offices in Dayton, Ohio, and other locations. The settlement resolves allegations that BES, through its former program managers John G. Hancock and Karen K. Paulsen, knowingly engaged in a fraudulent course of conduct with Keith A. Seguin, then a civilian Air Force employee and contracting official, and David J. Bolduc Jr., the co-owner and manager of a BES subcontractor, QuantaDyn Corporation, that resulted in GSA awarding BES a task order for training simulators. BES, in turn, awarded task orders (or “modules”) to QuantaDyn. The government alleges that Seguin improperly and illegally divulged confidential government contracting and budget information, a competitor’s confidential bid or proposal information and source selection information to Hancock and Paulsen, who used the illicit information despite knowing they were not authorized to possess it. Through this conduct, Hancock and Paulsen successfully influenced GSA to award the task order to BES. Additionally, the government alleges that, after the GSA award, Hancock, Paulsen, Seguin and Bolduc made use of confidential government budget information to formulate and submit price quotes to GSA for the individual modules that BES awarded to QuantaDyn on a sole-source basis. As a result of the conduct described above, BES, through Hancock and Paulsen, knowingly submitted fraudulent claims to GSA under the 37 modules awarded to QuantaDyn, which GSA paid. Hancock, Paulsen, Seguin and Bolduc previously resolved criminal charges related to this conduct. (Source: glstrade.com)
06 Jan 25. MBDA has integrated Roxel as a wholly-owned subsidiary of its European defence group, having acquired the 50% share held by Safran on 19 december 2024. This acquisition leverages Roxel’s existing and future capabilities at a time of major growth and investment. Roxel will continue to manage its activities independently, honouring all its existing contracts with other systems suppliers while developing new markets, particularly for export. This acquisition will accelerate the development of Roxel, strengthening its position as a global player in tactical propulsion and consolidating its role as a national champion in France and the UK.
MBDA CEO Éric Béranger hailed the operation: “I welcome everyone from Roxel to the MBDA Group. By reinforcing the work interactions and cooperation between the teams of the two companies,, this transaction is to support Roxel’s operational and industrial excellence. It also aims to provide an even more optimal response to the ramp-up challenges posed by the context of war economy, both in development and in production.”
Roxel CEO Sylvie Grison added: “This acquisition will enable us to further develop innovation in new solid propulsion technologies. Additionally, this integration operation will make it easier to optimise industrial cycles for faster ramp-up. I am therefore very pleased that this share acquisition has been completed.”
Roxel is a Franco-British firm formed from the merger of Celerg and Royal Ordnance Rocket Motors in 2003. As a European leader and a major global player in its field, Roxel designs, develops, manufactures and supplies solid propulsion systems and associated equipment for all types of tactical and cruise missiles and rockets for air, naval and land forces. Roxel has four production sites (one in the UK, one in the Nouvelle-Aquitaine region and two in the Centre-Val de Loire region) as well as offices in the Paris region.
02 Jan 25. Forrester’s Digest: SES seeks early wrap on Intelsat. SES is buying rival Intelsat for $3.1bn (€2.99bn) in a deal announced last April. The purchase had been expected to be completed in the second-half of 2025 once all regulatory hurdles had been overcome. Now, however, SES wants to wrap the agreement by June as it cites “fast-moving industry developments” and competitive threats from the likes of Elon Musk’s Starlink. On December 19th, 2024, SES CEO Adel Al-Salah met with very senior FCC staffers including Commissioner Brendan Carr (who will head the FCC after Donald Trump’s inauguration) to lobby for a speedy conclusion to the purchase, according to a report in specialist air intelligence publication Runway Girl Network. The move needs the FCC approval, as well as that of other agencies and regulators, but in particular the transfer of Intelsat’s transmission licences to SES.
“The communications industry is undergoing a period of rapid change and is becoming more competitive than ever due to the entrance of large, well-financed market disrupters and other new players; new technologies increasing spectrum capacity and efficiency; rising customer demand for ubiquitous, global connectivity; and the continued convergence of the communications ecosystem,” SES’s legal counsel (Nancy Eskenazi) wrote in a post-meeting letter to FCC secretary Marlene H. Dortch.
“In light of these developments, SES reemphasized the need to close the proposed transaction by June 2025,” she added.
The combination of SES and Intelsat is seen as being beneficial to the two (largely) geostationary satellite operators who are both being challenged especially in the aeronautical in-flight sector. Putting the two satellite giants together will allow significantly greater operational efficiencies and progress. (Source: Satnews)
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