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29 Sep 23. UAE’s EDGE acquires 50 percent stake in Brazil’s SIATT. The UAE’s EDGE Group, one of the world’s leading advanced technology and defence groups, has announced the acquisition of a 50 percent stake in Brazilian smart weapons and high-tech systems specialist, SIATT.
The acquisition deal was officially signed at SIATT’s headquarters in the city of Sao Jose dos Campos and witnessed by Faisal Al Bannai, Chairman of EDGE Group, and the senior leadership teams of both companies.
The acquisition follows a cooperation agreement signed by both companies in Rio de Janeiro in April this year, and is part of a subsequent co-development agreement signed between EDGE and the Brazilian Navy for advanced long-range anti-ship missile technology, as part of the MANSUP national anti-ship missile project, for which SIATT is providing the guidance, navigation, control and telemetry systems.
Mansour AlMulla, Managing Director and CEO of EDGE Group, said, “EDGE is committed to collaborating with strategically important industry players in Brazil, through investments or partnerships, in order to develop advanced defence capabilities and other related technologies. As part of our Latin America development roadmap, particularly in the Brazilian market, we are embarking on the development and manufacture of the next generation of high-performance and price-competitive smart weapons and solutions. Together with SIATT, we aim to become relevant market players in high-tech defence systems.”
Founded in 2015, and based in the city of São José dos Campos, SIATT specialises in the integration of systems with high technological content, which provides solutions to the demands of the defence and aerospace sectors.
Rogerio Salvador, CEO and one of the founders of SIATT, said, “This is a proud moment for SIATT as a regional leader in the field of advanced missile technology. EDGE’s investment in our expertise and our renowned capabilities is a testament to the high quality of our products and systems. In turn, it will enable us to benefit from EDGE’s scale and international multi-domain experience to jointly develop the next generation of smart weapons solutions for our respective Armed Forces, and other defence customers. SIATT, as a Brazilian Strategic Defence Company – EED, remains fully committed to contributing to national sovereignty.”
Hamad Al Marar, President – Weapons & Missiles at EDGE Group, stated, “This is a critical milestone and has been achieved by forging mutually beneficial relationships and the support and vision of the leadership of the UAE and Brazil, who continue to forge ever-closer defence ties by building independent sovereign capabilities, and supporting economic growth.
“Our acquisition of 50% shareholding in SIATT is a perfect example of this. It will enable us to combine expertise in the development of smart weapons and high-tech systems, both focus areas for EDGE, and to explore potential collaboration opportunities to enhance technologies and capabilities in the UAE and Brazilian markets.”
Vice Admiral Marco Antonio Ismael Trovão de Oliveira of the Brazilian Navy said, “EDGE is demonstrating through concrete action that it is a serious partner and supporter of the Brazilian defence industry, and the development of national capabilities across multiple domains. Today’s announcement of the Group’s acquisition of a major shareholding in SIATT will further strengthen our mutual vision and objectives of greater security and economic prosperity both here and overseas.”
SIATT’s product portfolio includes intelligent weapons such as missiles and guided munitions, and their integration onto aircraft, naval vessels, tanks and other land vehicles. Additionally, SIATT also excels in radars, sensors, and avionics systems technologies. (Source: Google/https://wam.ae/)
28 Sep 23. GE must face shareholder lawsuit over accounting, disclosures; judge urges settlement. General Electric (GE.N) failed to persuade a Manhattan federal judge to dismiss a long-running shareholder lawsuit accusing it of concealing risks at its power business, and the judge on Thursday urged both sides to settle.
U.S. District Judge Jesse Furman said shareholders could pursue much of their remaining six-year-old class action regarding Boston-based GE’s reliance on factoring in connection with long-term service agreements at GE Power.
Shareholders led by two pension funds said the power unit grew increasingly reliant on factoring, or the sale of future revenue for cash, to boost reported revenue while sacrificing future cash flows.
They said the unit did not have enough contracts to factor, and GE “blindsided” investors with billions of dollars of unexpected exposure, causing its stock price to fall.
In a 47-page decision, Furman said the evidence showed a “clear awareness” among management that GE Power’s use of factoring was contributing to a cash flow problem.
He also said a reasonable jury could find that GE intended to mislead, including in January 2017 when then-Chief Financial Officer Jeffrey Bornstein said factoring had “very little to do” with GE Power’s “very good underlying performance.”
The plaintiffs’ case covered various GE representations and disclosures between February 2016 and January 2018.
Furman dismissed claims over disclosures in November 2017 and January 2018. (Source: Reuters)
28 Sep 23. Avingtrans in a strong cash position after “beating city expectations again.” Avingtrans (LON:AVG) CEO Steve McQuillan and CFO, Stephen King speak to Thomas Warner from Proactive London after the engineering company released its preliminary results for the year to 31 May 2023. McQuillan gives a brief overview of the company’s unique way of doing business, which combines engineering with elements of the private equity model.
He highlights that Avingtrans specialises in serving highly regulated markets such as nuclear, defence, aerospace, and medical. Their business approach, termed “Pinpoint, Invest, Exit,” involves identifying struggling engineering businesses, acquiring them, revamping their operations, and subsequently selling them.
King reports a revenue increase of 17.5% for the year ending May 31, 2023, which he suggests “beat city expectations again”. The company also held £13m in cash reserves at the end of the period, enabling it to undertake potential future acquisitions and investments. McQuillan says he was pleased with the resilience of the business during a year blighted by challenging conditions in the market.
He also adds that the market is undervaluing the medical side of the business. Looking to the future, he suggests its more likely that Avingtrans will be divesting businesses over the next few years rather than acquiring any major new ones, not least because its still “digesting” two relatively recent acquisitions. (Source: Yahoo!)
28 Sep 23. AI pilot developer Shield AI now valued at $2.5bn. Although fully-autonomous AI combat fighter pilots may be a long way off, that doesn’t seem to have deterred investors in what is arguably the first combat-ready AI pilot to come to market.
According to media reports, Shield AI has just been valued at $2.5bn in its latest funding round. The San Diego-based defence technology startup formed in 2015, has been developing software to fly aircraft fully autonomously, even when disconnected from communications networks.
Advertising under the theme of “A Top Gun For Every Aircraft”, Shield AI’s Hivemind has already piloted an F-16 fighter jet, and defeated US Air Force and Navy fighter pilots in simulated dogfights with a 99 percent win-rate. The AI pilot has been developed for both military and commercial aircraft, including small unmanned aerial vehicles (UAVs).
The premise behind Hivemind is a simple one: AI in aviation must be trained to fly on its own, both beyond visual range and when digital communication with controllers is cut off. Moreover, there are specific needs that the military has, to use UAVs in situations where it is difficult or impossible to retain remote control.
Shield AI’s 29cm wide Nova 2 UAV uses Hivemind’s AI Level 5 autonomy, to navigate complex urban environments, subways, underground carparks and multi-storey complexes without communications, GPS positioning or a remote pilot. The UAV works alone or in teams, creating detailed maps of indoor structures, identifying adversaries and delivering a variety of payloads.
Hivemind is also used to pilot the V-BAT UAV, which Shield AI acquired via its buyout of Texan startup MartinUAV, or indeed to pilot whole teams of V-BATs. The V-BAT is designed for vertical take-off and landing in austere environments with no external support and can be assembled by two people and launched in under 20 minutes. Created for Forward Operating Bases, the V-BAT is a tactical asset able to increase domain awareness, penetrate integrated air defense systems, and carry a variety of payloads up to 25lbs (11kg).
However, Shield AI’s endgame is to create a high performance AI pilot that can fly fighter planes in combat. The company is currently positioning Hivemind as a digital co-pilot for a US Air Force F-16, able to augment combat decision-making for pilots. The software does this via edge-level AI that interfaces directly with onboard displays, flight controllers, sensors and radios.
The company plans to extend Hivemind’s capabilities to provide digital co-pilots for F-22s, F-18s and future next-generation aircraft. However, Shield AI’s product roadmap plans to continue to support legacy jet fighters, making them relevant for decades to come. That alone could be worth the money. (Source: Armada)
27 Sep 23. VSE Corporation Announces Mutual Agreement to Terminate the Sale of the VSE Federal and Defense Segment to Bernhard Capital Partners. VSE Corporation (NASDAQ: VSEC, “VSE”, or the “Company”), a leading provider of aftermarket distribution and maintenance, repair and overhaul (“MRO”) services for air, land and sea transportation assets for commercial and government markets, announced today that it has entered into a mutual agreement to terminate the agreement to sell the VSE Federal and Defense segment to Bernhard Capital Partners (“BCP”), which was originally announced on May 1, 2023.
The parties mutually agreed to terminate the agreement. Necessary approvals and closing conditions to effectuate the divestiture are no longer expected to be completed in a reasonable amount of time, for reasons unrelated to VSE or BCP. No party will be required to pay any termination fee as a result of the mutual decision to terminate the agreement, and the parties will each bear their respective costs and expenses. The VSE Federal and Defense segment will remain in discontinued operations as the assets are held for sale.
“While today’s announcement is unexpected, we intend to continue to pursue the divestiture of the Federal and Defense segment to accelerate our growth strategies as a two-segment aftermarket business,” stated John Cuomo, President and CEO of VSE Corporation. “Our decision to terminate the agreement did not come lightly, but we believe it provides a favorable opportunity for our team members and shareholders to move more quickly and effectively toward the sale of this business and its assets.”
“Since the May 2023 announcement of the strategic repositioning of VSE, we have generated strong earnings and robust above-market revenue growth in both our Aviation and Fleet segments and acquired a market-leading aerospace distribution and MRO business, furthering the strategic focus on high-growth, higher-margin commercial aftermarket business opportunities. We look forward to sharing new business updates and our third quarter results in the coming weeks,” Mr. Cuomo concluded. (Source: BUSINESS WIRE)
28 Sep 23. Babcock International Group PLC AGM trading update – strong start to the year, full year expectations unchanged Babcock International Group PLC (“Babcock” or “the Group”) provides a trading update for the first five months of the financial year ahead of its Annual General Meeting to be held at 10.30 am today. Trading has been encouraging since the start of the financial year, with good organic revenue growth, improved operational performance and higher cash flow compared to the same period in the previous year. Overall, including the impact of contract phasing in Marine and further growth in Nuclear infrastructure programmes, organic revenue growth is offsetting the impact of disposals in the prior year. Underlying operating profit increased year-on-year, driven by revenue growth and continued operational improvement driving underlying operating margin expansion. Operating profit also benefitted from the earlier than anticipated receipt of initial licence fees associated with the Polish MIECZNIK frigate programme. Underlying operating cash flow in the period was higher than expected, largely due to contract phasing. Outlook New programme wins, contract renewals and progress on the Group’s opportunity pipeline remain strong, supporting the Board’s unchanged expectations for another year of organic revenue growth, further underlying margin expansion, improved free cash flow and progress towards the Group’s medium-term guidance.
28 Sep 23. Hanwha Ocean hones in on warships for long-awaited turnaround. South Korean shipbuilder Hanwha Ocean is carrying out a 2trn won ($1.5bn) capital increase just months after its acquisition by Hanwha Group, setting the stage for its first big investment drive in a quarter century.
By focusing on the defense industry, former Daewoo Shipbuilding & Marine Engineering seeks to stage a V-shaped recovery in sales.
“Through this substantial investment, we aim to not only maximize the inherent competitiveness of shipbuilding but also become a global innovative company that provides solutions to the world’s security and climate change in the maritime industry,” Kwon Hyek-woong, who was tapped as CEO after the company’s acquisition by Hanwha, said of the share offering.
Companies within the Hanwha group were chosen Monday to purchase the new shares, with the payment expected to be completed in November.
Hanwha Ocean intends to use 900 bn won of the proceeds to expand its warship construction capacity. It received an 800bn won order in July from the South Korean navy for multiple next-generation ships, beating out rival HD Hyundai Heavy Industries.
The shipbuilder plans to leverage the Hanwha group’s sales channels as a major defense contractor to market to countries in Southeast Asia and the Middle East seeking to build up their naval power. It will bolster warship production capacity at its main shipyard in Geoje with an eye toward future orders.
Another 600bn won will go toward projects such as developing eco-friendlier ships with improved fuel efficiency, and digital technology including autonomous vessels, while 300bn won will be invested in shipyard automation and digital transformation.
Before its acquisition by Hanwha, the company previously known as Daewoo Shipbuilding spent years trying to turn itself around under a state-run bank after the 1997 Asian currency crisis. This left it with limited capital to invest in equipment upgrades and research and development compared with Hyundai Heavy and Samsung Heavy Industries.
The company struggled to find a private-sector buyer. Although it reached a deal in 2019 for its sale to Hyundai Heavy, this fell apart over European objections due to antitrust concerns. Last year, Hanwha Group, seeking to gain access to its technology, inked a final agreement to buy the struggling company.
The acquisition was completed in May, with Hanwha Group providing a 2trn won capital infusion to the newly renamed Hanwha Ocean. The shipbuilder used those funds to repay bank loans and reduce its debt burden, while the fresh 2 trillion-won infusion will be invested in growth.
With these two capital increases, Hanwha Ocean’s outstanding shares will swell to 306.35m in November from 107.29m at the end of 2022. Yet despite concerns about dilution, the stock price is up 80% from the start of the year.
The rally is a sign of investors’ expectations for its growth under a prominent defense contractor’s wing. The administration of President Yoon Suk Yeol seeks to reinvigorate domestic industry by expanding defense exports to Europe, the Middle East and Southeast Asia.
The government has relaxed worker visa requirements to alleviate a labor shortage, and is offering credit guarantees via Korea Trade Insurance on advance payment for orders, helping shipbuilders to access capital.
Han Seung-han, an analyst at SK Securities, sees Hanwha Ocean having “the best growth prospects among the three big South Korean shipbuilders.”
“The current rise in prices for ships such as liquefied natural gas tankers will improve profits,” Han said. “Over the medium to long term, it will reap the most benefits from the defense industry.”
But over its years under public ownership, the company suffered an outflow of talent, losing competitiveness in both sales and production. Its earnings are in a protracted slump, due partly to restructuring during the shipbuilding market bust of the late 2010s, with sales down to a third of their peak.
Once the world’s most prolific shipbuilder, Hanwha Ocean has fallen to sixth place as of last year, with Hyundai Heavy in the lead. Chinese players have expanded their share of the market thanks to huge domestic demand, with China State Shipbuilding and Yangzijiang Shipbuilding Group in second and fifth place, respectively, according to IHS Markit.
Besides container ships and bulk carriers, Chinese shipbuilders are starting to win orders for technically challenging LNG tankers, showing that the competitive edge enjoyed by South Korean players is narrowing. Steady capital investment and R&D spending, along with rebuilding its talent base, will be essential for Hanwha Ocean to meet investors’ expectations. (Source: News Now/https://asia.nikkei.com/)
27 Sep 23. Maritime Partners extends portfolio with Navy-linked acquisition. Maritime Partners’ fund acquired USMMI, a company holding contracts to provide vessels and services to the US Navy.
Financing provider Maritime Partners has revealed that one of its “managed funds” has acquired US Marine Management (USMMI), a tanker and military support craft chartering corporation.
USMMI owns a portfolio of vessels and charters for a division of the US Navy called Military Sealift Command.
The Norfolk, VA-based company also engages in the operation and maintenance (O&M) of US government-owned vessels. It currently holds an O&M contract supporting US Army training crafts in Japan.
USMMI currently operates a fleet of five US-flagged vessels, including one owned maritime support vessel, three owned tankers and one bareboat chartered tanker.
The newly acquired company has recently won a contract with the US Maritime Administration and its Tanker Security Program. The agreement led to USMMI acquiring a fourth tanker, this one medium-range, to be delivered in Q4.
Bick Brooks, co-founder and CEO of Maritime Partners, said the company was “excited” to bring USMMI into its fold: “USMMI’s long-term contracts with a strong customer base will nicely complement our existing portfolio of assets by providing diversification across counterparties, assets and end markets.
“We’re excited to partner with USMMI’s long-tenured and talented management team in the next phase of USMMI’s evolution.”
The acquisition will increase Maritime Partners’ portfolio of nearly 2,000 managed vessels leased from its New Orleans headquarters. (Source: naval-technology.com)
27 Sep 23. Leonardo DRS Announces Voluntary Delisting from the Tel Aviv Stock Exchange. Leonardo DRS, Inc. (Nasdaq and TASE: DRS) (“Leonardo DRS” or the “Company”) today announced that it is taking steps to voluntarily delist its common stock from the Tel Aviv Stock Exchange (the “TASE”).
Pursuant to Israeli law, the delisting of Leonardo DRS’s common stock is expected to take effect three months following the date of the Company’s request to the TASE to delist the Company’s common stock, which occurred on September 27, 2023. During the interim period, Leonardo DRS’s common stock will continue to be traded on the TASE.
The delisting in Israel will not affect Leonardo DRS’s continued listing on Nasdaq under the symbol “DRS” and all shares of common stock now traded on the TASE may be transferred to Nasdaq. The Company will continue to file public reports and make public disclosures in accordance with the rules of the U.S. Securities and Exchange Commission and Nasdaq.
“At this time, we believe that it is in the best interest of our Company and its stockholders that we concentrate our market activity on a single exchange,” said Bill Lynn, Chairman and CEO of Leonardo DRS. “We are grateful to all of the investors who traded our common stock on the TASE and thank them for their ongoing support.” (Source: BUSINESS WIRE)
26 Sep 23. Booz Allen Doubles Down on Adversarial AI Capabilities With New Investment. Booz Allen Hamilton (NYSE: BAH) – the largest single provider of artificial intelligence services for the Federal government – today announced that its corporate venture capital arm, Booz Allen Ventures, has made a strategic investment in HiddenLayer, a security platform that safeguards machine learning (ML) models. This investment strengthens and expands Booz Allen’s tenured Adversarial AI capabilities, including those developed for the Department of Defense and intelligence clients, and will further accelerate secure adoption of enterprise AI solutions to keep pace with emerging national security threats as well as rising consumer expectations.
“Every AI-enabled solution should be assessed for risk and appropriately protected from adversarial attacks – especially as the government looks to deploy AI capabilities in increasingly important applications,” said Matt Keating, leader of Booz Allen’s Adversarial AI portfolio. “Our clients operate in complex environments that require AI models be highly specialized, rapidly deployable, and secure. The HiddenLayer investment by Booz Allen Ventures better positions us to integrate startup, commercial, and open source innovation to rapidly augment our existing capabilities. Ultimately, allowing us to more quickly and confidently delivery robust AI capability to our clients – and the country at large.”
With increased AI adoption – specifically AI models deployed within mission critical systems – the risk surface increases for federal, defense, civil, national security and commercial users, with bad actors looking to exploit and accelerate cyber threats. The newly announced investment in HiddenLayer will complement and accelerate Booz Allen’s existing Adversarial AI capabilities, a leader for over five years in advancing machine learning (ML) methodologies to safeguard systems against attack.
This includes a long-standing focus on addressing key challenges with model security, such as data poisoning, data leakage, model evasion, and malicious code injection. In addition, Booz Allen has also led advanced research to assess the adversarial image perturbation robustness for computer vision models and how manipulated tabular data can enhance the behavior evasive capabilities of Microsoft Windows malware.
“Using pre-trained open-source models is an overall net positive, but this foundation also puts AI models at greater risk for adversarial attack. This tension is a threat that organizations need to be aware of, plan for, and get ahead of, as our adversaries are doing just that,” said Edward Raff, chief scientist at Booz Allen and leader of the Booz Allen ML research team, which has been publishing academic research on adversarial AI since 2018.
This is the latest AI-focused investment by Booz Allen Ventures, which identifies and invests in strategic, dual-use commercial technologies, with recent investments including Shift5, Credo AI, Hidden Level, Latent AI, Synthetaic, and Reveal Technology. The investment also builds on Booz Allen’s focused efforts and missions around Generative AI and Responsible AI, providing a robust security foundation as AI use increases.
“HiddenLayer’s powerful platform and expert team has proven effective in securing AI from a broad range of threats, so we quickly identified them as a partner that can support and protect our AI deployments,” said Travis Bales, Managing Director at Booz Allen Ventures. “From our early discussions, it was clear to us that the HiddenLayer team has the vision and execution to continue developing security for the emerging AI market.”
Booz Allen’s recent investment now enables Federal agencies to capitalize on HiddenLayer’s award-winning Machine Learning Detection & Response platform, as well as Booz Allen’s AI security research, risk and vulnerability assessments, managed detection and response services—all paired with AI security engineering best practices, tools and technologies.
“Booz Allen continuously proves its commitment to developing AI capabilities that are robust, secure, and offer the technical depth needed by the Federal government. Their 360-degree approach to AI combined with their steadfast commitment to HiddenLayer’s vision since our founding made them a perfect partner for the next stage of our growth,” said Chris Sestito, Co-Founder & CEO at HiddenLayer. “Bringing together our MLSec platform and their purpose-built AI solutions ensures our government can continue to innovate through AI adoption with confidence knowing they are secure from all types of cyber-attacks, including those from nation-states.” (Source: BUSINESS WIRE)
27 Sep 23. Palo Alto Networks is in advanced talks to buy Talon Cyber Security and Dig Security. US cybersecurity company Palo Alto Networks, which was founded by Israeli Nir Zuk, is in talks to buy two Israeli companies for an overall amount of $1bn, in order to improve its capabilities and competitiveness in cloud security for enterprises. According to industry sources, Palo Alto Networks is in talks to acquire Dig Security for $300-400m and Talon Cyber Security for $650m.
Dig Security
Dig Security has developed a platform to prevent data leaks for databanks in the cloud. The company was founded in 2021 and has raised $45m since then. In its most recent financing round in 2021, Dig Security had a company valuation of $125m and it is now being sold well above that valuation at between $300m and $400m. Investors includes Team8, for which this would be one of its most significant exits in the current wave of acquisitions of cybersecurity companies. Other investors include CrowdStrike, CyberArk and Merlin Ventures. Later investors who will enjoy lower returns include Signal Fire and Flicis Ventures.
Talks between Palo Alto Networks and Dig Security have been conducted over the past few months and are now in their most advanced stages. The acquisition is expected to be announced in the coming few weeks, although the discovery of the talks by the media could complicate matters, as happened when Palo Alto Networks’ talks to buy Israeli cybersecurity company Apiiro broke down in September 2022.
Two of Dig Security’s Israeli rivals – Polar Security and Laminar – have been acquired earlier this year by IBM and Rubrik Security respectively – the latter for an estimated $250m. Dig Security is considered the leading company in this trio and will therefore almost certainly fetch a far higher price. Source familiar with the potential deal say that it would expect to be sold for at least double its most recent valuation. Dig’s security concept includes not only identifying dangerous information configurations but also continuous monitoring of data drawn from the databases and returned to them, while identifying malicious use and preventing an attack on the enterprise. Estimates are that Dig Security’s annual revenue rate is higher than its two rivals that were acquired.
Talon Cyber Security
Talon Cyber Security, which Palo Alto Networks is in talks to acquire for an estimated $650m, is also a leader in its cybersecurity category of end point security mainly from browsers. Palo Alto Networks understands how Google’s Chrome browser has become a data security liability that is responsible for hacks and leaks of a lot of data from enterprises and has been identified as the next point of weakness that must be protected.
Palo Alto Networks, led by CEO Nikesh Arora, has already made 17 acquisitions, even before the potential acquisitions of Talon and Dig Security. Palo Alto’s business development team is known for its monitoring of many cybersecurity companies worldwide, which it maps and when the opportunity arises makes tempting acquisition offers. The company, which is mainly active in the field of hardware devices, also wants to strengthen its product offerings for enterprises that only operate on the corporate cloud, and therefore makes purchases in the field to compete with other giants such as CrowdStrike, SentinelOne and Lacework. (Source: News Now/https://en.globes.co.il/en)
26 Sep 23. Cohort AGM Statement and First Quarter Update. Cohort, the AIM listed independent technology group, is today holding its Annual General Meeting (AGM) and accordingly issues the following announcement. Cohort achieved record financial results in the year ended 30 April 2023, with strong performances in revenue and adjusted operating profit that exceeded market expectations. We finished the year with a robust cash position and a record closing order book of £329.1m stretching out to 2032, with strong revenue cover for the current financial year.
Following contract wins since the start of the financial year of over £90m, the order book on 22 September 2023 stood at £370m, representing consensus revenue cover for the current financial year of 93%.
Cohort continues to have a strong financial position, with net funds at the end of August 2023 standing at £15.2m, compared to £15.6m at the 2023 financial year end. The Group retains significant cash and banking facilities to fund its currently anticipated commitments and, potentially, to finance future acquisitions.
Following an increased level of activity with the UK MOD last year, strong momentum has continued in the first quarter, with good prospects to secure further long-term orders for our naval systems and support work both from the UK MOD and in export markets. One demonstration of this was the £17.5m contract award to SEA (announced 23 August 2023) by a UK customer to provide an External Communications System for a major defence programme.
As a result of planned capital expenditure and expansion in working capital, we anticipate our net cash balance will decrease, but that we will maintain positive net funds at the year end. Overall, we have had an encouraging start to the 2023/24 financial year and our expectations for the full year remain unchanged.
21 Sep 23. Space industry shakeups: Aerospace consolidates, Maxar breaks up. One Maxar official told Breaking Defense today that Maxar’s “mission focus” on NRO will not be affected by the split up.
Two big players in the space market restructured their organizations this week: federally funded research and development center (FFRDC) The Aerospace Corporation; and remote sensing industry behemoth Maxar Technologies.
Aerospace announced today that it “will be making significant changes to its organizational structure,” as of Oct. 1, combining “the Space Systems Group and its Defense Systems Group to create a unified organization” to support the FFRDC’s Defense Department customers.
“The space domain is undergoing rapid and profound change. By unifying our support to our largest customer, Aerospace will be well positioned to deliver end-to-end capabilities to outpace the threats we face in space,” said Aerospace President and CEO Steve Isakowitz.
Under the reorganization, Lara Schmidt will take over for the retiring Jay Santee, a former DoD head of space policy, as vice president of Defense Architectures and Integration, leading Aerospace’s work “on space warfighting, future space architectures, operations and integration,” according to the announcement.
Todd Nygren will head up the new Defense Space Acquisition organization, and Randy Kendall will lead the Launch, Missiles and Mobility mission support to DoD, as well as supporting the Missile Defense Agency. Jamie Morin will lead the Defense Strategic Space unit, and continue as executive director of the Center for Space Policy and Strategy.
A more dramatic change is in store for Maxar. As first reported by Space News, the company is splitting into two separate business units, following its December acquisition by private equity firm Advent International for $6.4bn. Maxar Space Infrastructure will be responsible for the firm’s manufacturing operations, and will be headed by Chris Johnson. Maxar Intelligence will take over the remote sensing activities, and will be run by Dan Jablonsky, who has been serving as CEO of Maxar Technologies, according to Space News.
Word on the street, according to one industry analyst with keen eyes on the Maxar moves, is that some 120 employees have been let go in a first round of layoffs, with at least two more rounds to come. Several industry watchers said there is a widespread expectation that Advent will shortly sell off the two businesses, starting with the manufacturing side. (Private equity funds typically take short-term control of a business, then restructure it and resell it at a profit.)
A Maxar spokesperson confirmed the Space News story, but said nothing more could be released at this time.
The company, which acquired satellite imagery company DigitalGlobe in 2017, has a close relationship with the National Reconnaissance Office — last May winning one of three NRO contracts to provide electro-optical imagery covering five years, with a option for another five and worth a potential total of $3.24bn.
It also has been supplying space-to-space imagery to NRO for some time, a market area that Maxar officials last month told Breaking Defense the company is trying to expand after having secured a license from the National Oceanic and Atmospheric Administration to allow commercial sales.
One Maxar official told Breaking Defense today that Maxar’s “mission focus” on NRO will not be affected by the split up. (Source: Breaking Defense.com)
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SPX CommTech, part of SPX Technologies Inc, innovates specialised technologies within the Radio Frequency (RF) spectrum to ensure a smarter, more secure future for all. Formed by TCI and ECS, SPX CommTech’s Battlespace portfolio enables defence and security teams to detect, defeat and exploit RF signals to enhance communications intelligence (COMINT) and counter unmanned aerial systems (Counter-UAS). Additionally, its Tactical Data Link portfolio allows intelligence gathering agencies, special forces, emergency response, and security teams to securely and reliably transfer video and data between enabled-aircraft and ground teams over long distances for airborne Intelligence, Surveillance, Reconnaissance (ISR). For more information visit www.tcibr.com and www.enterprisecontrol.co.uk
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