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22 Aug 24. Trump anxiety spurs investment in European defence startups.
- Summary
- Europe hedging against a Trump return with defence investments, investors say
- Former president previously said he would not aid NATO allies under attack
- Defence spending in Europe rose to 552bn euros in 2023, up 16% in one year
Donald Trump’s potential White House return has helped spur a flurry of investment in defence-technology startups across Europe, according to eight prominent industry executives and investors.
The Republican presidential candidate has threatened U.S. withdrawal from NATO and said he would not defend allies that did not increase their defence budgets. He’s locked in a tight-run race with Vice President Kamala Harris in the Nov. 5 election.
Trump’s unpredictability, combined with the war in Ukraine and tensions in the Middle East, has contributed to global military spending reaching a record high of $2.4trn in 2023, according to the Stockholm International Peace Research Institute (SIPRI).
In June, the $1.1bn NATO Innovation Fund (NIF) announced partnerships with venture capital firms and defence startups across Europe, aiming to bolster security on the continent.
Meanwhile, the European Union earlier this year unveiled its first ever defence industrial strategy, committing more than $1bn towards military innovation.
While the prospect of a Trump presidency was not the only factor behind those initiatives, it has been a significant driver of subsequent investments made by governments and venture capitalists alike in manufacturers of drones, robotics and quantum computing, the eight executives said.
Operating out of Munich, Vsquared Ventures is one of Europe’s leading deep-tech investors, having recently raised a 214m euro ($237.99m) fund to invest in space, robotics, and other technologies.
“Trump’s threats have made European states think very differently about investing in their own capabilities and giving contracts out, often to startups,” said Herbert Mangesius, founding partner at Vsquared, which has partnered with the NATO fund.
“We want to see faster cycles, broader experimentation, and better capabilities. The planning in a ministry is so slow, and the VC world is one potential answer to this problem,” he added.
Vsquared’s portfolio includes IQM, one of Europe’s leading quantum computing companies, and Isar Aerospace, a rocket manufacturer which has itself raised more than 400m euros of private capital.
At present, the NIF is backed by 24 NATO countries, with eight remaining countries – including Canada and the U.S. – not involved. “My ambition is to eventually have all NATO allies join the fund,” Andrea Traversone, the organisation’s managing partner, told Reuters in an interview.
Asked if Trump’s potential return had influenced the NIF’s activities, he said: “I don’t think it will make a difference to our mission. This matters to anyone who is interested in our mission of protecting citizens of allied partners.”
STRUCTURAL CHANGE
While Russia’s invasion of Ukraine has been the primary reason for higher spending, some defence industry investors say Trump’s approach towards U.S. allies has shaken leaders in NATO and across Europe. That has resulted in governments increasing their defence spending, investing in, and partnering with new technology companies.
Ricardo Mendes, CEO of Lisbon-based drone manufacturer Tekever, which has contracts with Britain, Ukraine, the EU and others, said: “The potential of a second term for President Trump brings various implications for both American and European defence enterprises.”
“Discussions are ongoing regarding the overhaul of procurement procedures, with a focus on more flexibility and introducing agility, which would favour smaller and midsize tech companies,” he added.
As of 2023, defence and security spending across Europe had risen 16% to 552bn euros since 2022, according to data collated by SIPRI.
ARX Robotics, a German startup which recently raised a 9m euro funding round backed by the NIF, builds autonomous robots that can be deployed on the battlefield.
Asked if the potential for a Trump victory in November was influencing defence investment, CEO Stefan Roebel said: “Absolutely. That’s something everybody has in the back of their heads. Europe needs to up its investment in defence, and you’re seeing a shift in momentum now.”
RESILIENCE
Around the world, VC funding faced a major downturn in 2023 as investors waited to see how their pandemic-era ventures would play out against a backdrop of rising interest rates and public market volatility. In Europe, overall startup investment fell 44%, from $103bn to just $57bn, according to Pitchbook data.
By comparison, investment in local defence technology startups remained relatively resilient, falling 21% in the same period, from $2.6bn to around $2bn.
Germany is easing red tape for investments into defence companies, Finance Minister Christian Lindner told Reuters in February, as Berlin ramps up its military spending.
Mangesius cited Quantum Systems, a German drone manufacturer which has recently signed deals with its home government, as a company that has directly benefited from Germany planning for a Trump return.
“It was a direct consequence of what Trump said. That made the German state react and put money into this because European countries need to be self-sufficient,” he said. “You can’t outsource your own security to another country.”
Bulent Altan, founding partner at Alpine Space Ventures, also based in Munich, told Reuters that Europe had been investing in defence-tech in order to be a better partner to the U.S.
He said: “And if that partnership should have hiccups along the way, you’re not standing there with nothing in your hand.” ($1 = 0.8992 euros)
(Source: Reuters)
19 Aug 24. High-flying European defence stocks are taking a knock. Shares in German arms manufacturer Rheinmetall tumbled 5 per cent in early trading on Monday, while the UK’s BAE Systems lost 2.5 per cent. Investors took fright at reports that Germany’s finance minister planned to veto new military aid to Ukraine. Perspective is in order. The Euro Stoxx Aerospace and Defense index has roughly doubled since Russia invaded Ukraine in February 2022, putting it in a different league to the 7 per cent rise notched up by the broader Stoxx 600 benchmark. Swelling sales, order books and profits justify much of that. Valuations for the likes of Rheinmetall and BAE have roughly doubled as a multiple of total enterprise value to ebit, based on S&P Capital IQ data. Monday’s jitters look like little more than an excuse. Germany had already hinted at reducing spending in Ukraine. If victorious in the US presidential election, Donald Trump could well do likewise. Of course, at some point there will be no more requirement for spending. Ultimately, wars end, albeit not always with a formal declaration of peace. Yet that does not leave the world a less bellicose place. There are 110 armed conflicts under way today, including seven in Europe, according to monitor Geneva Academy. Virtually all Nato members are on a mission to increase military spending. The proportion of spend going on kit has more than doubled in the past decade. European defence companies’ latest numbers reflect that. Scale, both via increased sales and acquisitions or expansion, is boosting profitability. Rheinmetall, which bought Rheinmetall Expal Munitions last year, lifted operating margins to 10.6 per cent at the half-year, more than 3 percentage points up on the year-ago level. Earlier this month, it added to its arsenal with the $950mn purchase of US military vehicle parts maker Loc Performance. For sure, there are some caveats to this seeming super cycle. Constraints on growth include supply-chain reconfiguration and financing. The latter is of less immediate concern to the big listed groups, but highly relevant to the sprawling web of SMEs upon which they depend. That in turn hobbles plans — both at state and corporate level — to beef up use of SMEs and strengthen domestic supply chains. European governments are taking piecemeal steps towards helping on this score. Technology should provide another spur, such as using 3D printing to save labour and time. There will inevitably be wobbles as governments across the globe seek to make savings. But demand suggests the defence sector’s rally is not over yet. (Source: FT.com)
20 Aug 24. Defense Tech Startup DEFCON AI Raises $44m in Seed Financing. DEFCON AI, an insights company that’s building a next-generation modeling, simulation, and analysis (MS&A) toolset for the modern military environment, today announced that it has raised $44m in Seed funding. The round was led by Bessemer Venture Partners with participation from Fifth Growth Fund and Red Cell Partners, among others. As part of the financing, Christopher Wan of Bessemer joins DEFCON AI’s Board of Directors, alongside independent board member Dr. Ray O. Johnson, former CTO of Lockheed Martin and Bessemer Operating Partner.
“At DEFCON AI, we are developing powerful solutions to reshape response planning in contested and disrupted environments,” said DEFCON AI Co-Founder and CEO Yisroel Brumer. “We bring to the DoD our capacity to very quickly field transformational software innovation so that defense leaders and planners have the tools they need to effectively coordinate operations and plan around disruptions. Our ability to do this dramatically improves the odds of materiel and manpower making it to their destinations without delay. At a time when near-peer competitors are stepping up their investments in intelligent military technology, such capabilities could mean the difference between winning and losing wars within the next decade.”
A Red Cell Partners’ incubation, DEFCON AI has achieved remarkable growth since its inception in 2022. It previously closed millions of dollars in Department of the Air Force Phase II and Phase III Small Business Innovation Research contracts and delivered its first product to strong customer feedback.
“Few organizations can take high-end software engineering and artificial intelligence expertise and combine it with a deep understanding of battlefield and defense operational requirements to rapidly deliver the kinds of technology that the DoD needs, the way we can at DEFCON AI,” said Gen. (Retired) Paul Selva, a DEFCON AI Co-Founder and its Chief Strategy Officer. “With algorithms that are built to allow planners to immediately respond to disruptions, we have already established ourselves as a valuable partner to the DoD.”
DEFCON AI will use the funds raised to grow its team, enhance its R&D program to expand its dual-use offerings, and extend its core capabilities across an array of Defense missions as well as the commercial sector to allow public and private entities to swiftly and efficiently predict and respond to disruptions.
“The security of the U.S. increasingly depends upon innovative software that delivers speed, intelligence, and resilience, which is why Bessemer is proud to fund defense tech startups like DEFCON AI,” said David Cowan, partner, Bessemer Venture Partners. “DEFCON AI’s extraordinary team of career public servants and military leaders is uniquely positioned to partner with the Defense Department to build smarter, more nimble logistics capabilities.”
Hon. Mark T. Esper, Chairman of Red Cell’s National Security Practice and former Secretary of Defense said, “In an era of great power competition marked by increasing complexity, unpredictability, turmoil, and danger, DEFCON AI works to reduce these factors and empower decision makers at all levels when it comes to conducting mobility and logistics operations across a full range of scenarios. With this latest round of funding, DEFCON AI is positioned to not only continue to support the Defense Department, but to enable commercial enterprises to get products where they need to be in a faster, better, and more economical manner.”
About DEFCON AI:
DEFCON AI is an insights company that is building a next-generation modeling, simulation, and analysis (MS&A) toolset for transportation and logistics operations within the modern military environment. Leveraging expertise in artificial intelligence, mathematical optimization, simulation, analytics, and software engineering, DEFCON AI’s tools empower planners and leaders to formulate strategies for transportation modality, sustainment, and logistics operations in the face of disruptions. DEFCON AI is a Red Cell Partners company. Visit us at defconai.com and follow us on social media (LinkedIn, X, Instagram).
(Source: BUSINESS WIRE)
20 Aug 24. Quickstep proposes divestment of MRO business. Quickstep Holdings has proposed the divestment of Quickstep Aerospace Services, the company’s maintenance, repair, and overhaul (MRO) arm, cauterising ongoing operational losses from the business unit.
According to a recent filing with the ASX, the aerospace engineering, manufacturing, and aftermarket services provider outlined it was looking to “sell all or a majority” share of the business unit to a global entity with a focus on the MRO market.
The proposal comes following ongoing operational losses and negative cashflows stemming from Quickstep Aerospace Services (QAS) arising from poor market conditions within the commercial airline MRO market.
Quickstep Aerospace Services will continue to trade despite the announcement, the company has confirmed.
QAS provides maintenance, repair, and overhaul work to Defence and commercial aircraft, having acquired the assets of Boeing Australia Component Repairs in February 2021.
Quickstep defended the original acquisition, noting it was aligned with their objective of growing their defence sustainment business and grasping new opportunities in the commercial market following the pandemic.
The announcement comes months after the company informed the ASX it would reduce headcount in their direct production and operational support units by 20 per cent each as demand for F-35 components slowed.
Meanwhile, the aerospace composite business is also expected to reduce staff within its corporate support teams by 35 per cent.
(Source: Google/Defence Connect)
19 Aug 24. BATM starts to deliver on new strategic focus. The technology group’s change should drive a step change in profits and a re-rating.
First-half results from technology group BATM Advanced Communications (BVC:20.3p) mask the underlying progress the board has been making to restructure non-core activities and prioritise its core cyber security, network solutions and diagnostics activities.
For instance, the cyber division moved from break-even in the first half of 2023 to a cash profit of $2.6m on a fivefold rise in revenue to $8.3mn as it delivered on a strong backlog of orders. The business continues to win new contracts, too, including one worth $2.3m from a long-standing government defence department for a next-generation encryption solution.
However, the most significant development was the signing of a strategic partnership and cooperation agreement with a global technology, engineering and defence group to deliver BATM’s advanced cyber security solution to commercial markets. The partner generates annual revenue of more than $10bn and serves customers in 100-plus countries across Asia, Europe, the Middle East and North America. House broker Shore Capital believes that “it sets the scene on a new wave of growth for cyber activities commencing in 2025”.
Although the group’s networking division reported a first-half cash loss of $0.9m on revenue of $6m, this reflected the investment in BATM’s high-margin edge computing and network function virtualisation software product suite, Edgility. Excluding this activity, the division would have been profitable.
Bearing this in mind, management expects that “a number of proof of concepts and trials with potential customers will come to a successful conclusion in the second half.” Post the half-year end, BATM became an Amazon Web Services (AWS) qualified software partner solution for AWS IoT Greengrass, an open-source edge runtime and cloud service, so is well placed to expand the business into the technology giant’s huge customer base.
In addition, the directors anticipate receiving new orders for the unit’s carrier ethernet products as customers and distributors commence restocking as inventory built up during the Covid-19 pandemic starts to dissipate. As a result, guidance is for a much improved second-half performance from the networking division.
New products set to drive growth in Diagnostics
Although the group’s diagnostics division delivered 7 per cent higher revenue of $17m, its cash profit of $1.2m was unchanged due to a higher mix of lower-margin instrument hardware sales. However, the expansion of the customer base will drive sales of associated reagents that are higher margin.
Moreover, the unit is now generating revenue from its new MDXlab molecular diagnostics instrument. Based on the real-time polymerase chain reaction (PCR) method, it offers laboratories a compact single effective solution that undertakes the different steps within the PCR process. In the coming months, BATM also expects to launch a diagnostic instrument that automates the manual library preparation process for an advanced technology used for DNA and RNA sequencing and variant/mutation detection.
Forecasts point to a step change in profit
Importantly, the directors are maintaining full-year guidance in line with Shore Capital’s estimates. Analysts expect adjusted pre-tax profit to increase from $1.5m to $2.8m on 16 per cent higher revenue of $143mn. Furthermore, the operational leverage of the business underpins a step change in profitability in the 2025 financial year, assuming BATM can hit its 10 per cent revenue growth target. On this basis, analysts forecast a rise in 2025 pre-tax profit from $2.8m to $6.5m to drive up earnings per share (EPS) by 167 per cent to 0.8¢. There is scope for earnings-accretive acquisitions, too, as the board looks to deploy net cash of $27.6m (5p) and recycle likely proceeds from non-core disposals. If the board can achieve next year’s estimates, then the shares are likely to re-rate. That’s because BATM is currently valued at book value parity and on a modest multiple of 6.5 times 2025 cash profit estimates of $13.4m to enterprise valuation of $87m. Hold. (Source: Investors Chronicle)
19 Aug 24. German defence stocks down after report of freeze on new Ukraine military aid. German defence stocks fell on Monday, after the Frankfurter Allgemeine Sonntagszeitung (FAS) newspaper on Saturday said the finance ministry would not approve additional applications for Ukraine military aid due to budget constraints.
Shares in weapons maker Rheinmetall (RHMG.DE), were down 3% at 0923 GMT, the biggest losers in the German blue chip index Dax (.GDAXI. Hensoldt (HAGG.DE) a maker of radars for IRIS-T air defence system and tank gearbox maker Renk (R3NK.DE) were down 6% and 4%, respectively.
No new requests for money for Ukraine will be approved at the request of Chancellor Olaf Scholz, FAS reported on Saturday, citing a finance ministry letter from Aug. 5. The German chancellery and the finance ministry did not immediate reply to requests for comments.
Around 8bn euros ($8.8bn) is already earmarked for Ukraine’s military in 2024, and the budgeted 4bn euros for 2025 is already overbooked, according to the weekly. “The pot is empty,” FAS quoted a government source as saying.
The 2024 and 2025 budget plans have not changed, German government sources told Reuters. The planned financial aid for Ukraine would be halved to around 4 bn euros in 2025 because additional funds from the G7’s $50 bn loan plan should be available from November, the sources said.
A spokesperson for Hensoldt said the FAS report was “blown out of proportion” and that the firm did not see any backlash from it for its business.
The German government has said that instead of spending taxpayers’ money, it wants to use proceeds from frozen Russian assets for further Ukraine aid, in coordination with its Group of Seven (G7) partners.
Budget negotiations between Germany’s three-party coalition were difficult and protracted as large spending requirements for climate, social measures and infrastructure clashed with constitutionally enshrined limits for new debt. (Source: Google/Reuters)
15 Aug 24. Paramount ADGM files for Chapter 11 over arbitration dispute in the Middle East but global operations unaffected. UAE-based Paramount ADGM (Abu Dhabi Global Market) has filed for Chapter 11 bankruptcy protection in Delaware, United States, over a dispute initiated by a Middle Eastern defence company. Global aerospace and defence company Paramount has operations worldwide, but operations in South Africa and elsewhere will not be affected, the company has said.
Bloomberg reported that the company filed for bankruptcy on Thursday 15 August, listing assets of between $500m and $1bn and liabilities of between $100m and $500m.
Chapter 11 bankruptcy allows a company to keep operating while it works out a plan to repay creditors. It appears the Chapter 11 filing relates to a solvent debt restructuring process.
Paramount Group Limited, a non-operating company licensed in the Abu Dhabi Global Market (ADGM) in the United Arab Emirates, said in a statement on Thursday that a limited number of its non-operating entities voluntarily filed for Chapter 11 protection in the United States after an arbitration award issued in August 2024, stemming from a dispute initiated by an unnamed Middle Eastern company in 2022.
“The company believes the outcome of the arbitration to be incorrect, but the arbitration process means that the decision cannot be appealed. Additionally, Paramount was not permitted to pursue its counterclaims against the Middle Eastern company during the arbitration. These claims far exceed the amount awarded and can now be actively and aggressively pursued,” the company said in a statement.
“Paramount’s shareholders and management believe that the value of Paramount ADGM is significantly higher than the arbitration award. The decision to file for Chapter 11 is a critical step in protecting the substantial goodwill and value of Paramount, while allowing the company to pursue its legitimate claims against the Middle Eastern company in the US Federal Courts,” Paramount added.
It said the Chapter 11 filing in the United States will not in any way impact other Paramount operations around the world, including South Africa. “Paramount remains fully committed to its customers, vendors, and employees. Business will continue as usual, with all projects and services proceeding without interruption.”
The aerospace and defence company said relationships with its global vendors remain robust, and payments for goods and services from the operating entities outside of Chapter 11 will continue as normal. The company’s employees, recognised as its greatest asset, will experience no changes to their jobs, salaries, or benefits during this process, it said.
South African company ADG Mobility (‘ADGM’), part of the OTT Group of Companies, has clarified that it is not associated with Paramount. According to Dr Stefan Nell, Group Managing Director of the OTT Group of Companies and co-founder and CEO of ADG Mobility, ADGM has no association whatsoever with Paramount and did not file for bankruptcy. The term ADGM refers to ‘Abu Dhabi Global Market’ Free Zone where Paramount is located in the UAE, he stated. (Source: https://www.defenceweb.co.za/)
16 Aug 24. US: California AI bill will likely increase state-level regulatory framework risks for technology firms. On 15 August, California’s State Assembly Appropriations Committee endorsed an amended bill to regulate AI systems in the state. The bill empowers California’s attorney general to sue technology firms if their AI systems cause significant harm, such as property damage. The technology industry, especially startups, has criticised the bill for potentially stifling innovation. In response, several Democratic members of Congress urged Governor Gavin Newsom to veto the regulation, claiming that the bill will elevate the risks facing California’s economy with ‘minimal public safety benefits.’ The Democratic-majority Legislature is expected to pass the bill by 31 August. While it remains unclear whether Newsom will support the bill, we assess that lawmakers are likely to continue to push for increasing regulation of the AI industry in California in the coming months. Furthermore, a patchwork of state-level legislation is likely in the medium-to-long term as other states propose AI regulations, increasing regulatory framework and compliance risks for technology firms as a result. (Source: Sibylline)
16 Aug 24. Boeing, Lockheed Martin in talks to sell rocket-launch firm ULA to Sierra Space. Boeing (BA.N) and Lockheed Martin (LMT.N), are in talks to sell their rocket-launching joint venture United Launch Alliance to Sierra Space, two people familiar with the discussions said.
A deal could value ULA at around $2bn to $3bn, the sources said.
A deal to sell ULA, a major provider of launch services to the U.S. government and a top rival to Elon Musk’s SpaceX, would mark a significant shift in the U.S. space launch industry as ULA separates from two of the largest defense contractors to a smaller, privately held firm.
The potential sale comes after years of speculation about ULA’s future and failed attempts to divest the joint venture over the past decade. In 2019, Boeing and Lockheed Martin reportedly explored selling ULA but couldn’t agree on terms with potential buyers.
The negotiations could end without a deal, the sources said.
ULA referred Reuters to Boeing and Lockheed for comment. The two companies said they do not comment on market speculation. Sierra did not immediately return a request for comment.
Jeff Bezos’ Blue Origin and Cerberus Capital Management had placed bids in early 2023 for the company, according to people familiar with the negotiations. Rocket Lab had also expressed interest, two people said. None of those discussions led to a deal. Rocket Lab could not be immediately reached.
A potential deal would be an ambitious move for Sierra Space, spun off from Sierra Nevada Corp in 2021 to focus on bringing to market its long-delayed Dream Chaser spaceplane and building a private space station habitat with Blue Origin. Sierra Space has weighed a public offering.
A potential deal could accelerate deployment of its crewed spaceflight business, analysts said. A ULA acquisition, they said, would give the company in-house access to launch vehicles that could send its spaceplane and space-station components into Earth’s orbit, rather than spending hundreds of millions of dollars for those launches as a customer.
For Boeing, the potential sale of ULA represents a strategic move under new CEO Kelly Ortberg, who took the helm in August. A deal would allow Boeing to concentrate on its core aerospace and defense businesses while reaping some cash from ULA’s sale.
ULA was formed in 2006 as a consolidation of Boeing’s and Lockheed’s dueling rocket businesses, ending years of competition between the two and cementing their grip on government launch services – the primary mission of the joint venture’s founding charter.
The rise of SpaceX and its reusable Falcon 9, which galvanized a satellite industry seeking cheaper access to space, forced ULA to phase out its decades-old Atlas and Delta rockets for its new, cheaper Vulcan rocket that made its debut launch in 2023.
But ULA has faced challenges in scaling Vulcan production and upping its launch rate to meet commercial demand and fulfill contract obligations with the Space Force, which in 2021 picked Vulcan for a sizable chunk of national security missions alongside SpaceX’s Falcon fleet.
A sale of ULA would unshackle the company from Boeing and Lockheed, whose boards have long resisted ideas from ULA to expand the business beyond rockets and into new competitive markets such as lunar habitats or maneuverable spacecraft, according to former executives. (Source: Reuters)
16 Aug 24. Defence companies’ expansion plans are being hobbled by wary lenders. Regulation, ethics and reputation are big stumbling blocks, depriving the industry of the cash it needs to expand production. Two-fifths of small and medium-sized enterprises in defence have found it difficult or very difficult to access finance, according to a survey carried out by the directorate-general for Defence Industry and Space, which leads the European Commission’s activities in the sector. Half of these companies refrained from seeking bank loans in 2021/22, massively more than the 6.6 per cent average across all SMEs in the region. True, there is plenty to make lenders queasy. These are not companies that skip through risk profiling checklists. Many are over-leveraged at this point in the cycle, after rushing to add capacity after Russia invaded Ukraine following years of minimal investment. They operate on long-term contracts: at eight to 10 years or more, these stretch beyond most lenders’ preferred timeframes. End customers, usually governments, may face budget squeezes or are subject to their own geopolitical risks. Banks’ usual anti-money laundering, know-your-customer and anti-terrorism checks are more rigorous when applied to an industry that makes weapons and exports to far-flung parts of the globe. But unwillingness to lend peaks when it comes to SMEs, a key artery of the sector. These inevitably have less robust balance sheets than their big, listed peers. In the UK many are also still repaying funds from the Coronavirus Business Interruption Loan Scheme (CBILS). The sector was a big recipient of pandemic-era government support loans. Rising insurance premiums further erode cash flow. Given the preponderance of SMEs, many long-established and family-owned, affordable bank loans remain the preferred source of funding. Banks’ reluctance to lend is not just at odds with a sector keen to increase production to meet swelling order books, but also with government aims to muscle up on defence. The EU wants to increase defence spending; the UK’s freshly minted government has yet to detail its plans but has signalled more spending in pre-election campaigning. (A disconnect between government policy ambitions and funding availability is not limited to defence, of course: processors of critical minerals find themselves similarly kiboshed.) Europe’s DIS “conservatively” puts the debt financing gap at an average €1bn-€2bn for SMEs in the defence sector. Closing that gap — thus enabling the industry to beef up capacity — will entail governments and banks’ co-operation. Depriving an in-demand industry of cash makes little sense. (Source: Google/FT.com)
19 Aug 24. Dover (NYSE: DOV) today announced that it has acquired Criteria Labs, Inc. (“Criteria Labs”), a leader in radio frequency “RF” device and microelectronic engineering solutions tailored for high-reliability applications in the space, aerospace, defense, commercial semiconductor, automotive, and medical industries. Criteria Labs is now part of the Microwave Products Group (MPG) within Dover’s Engineered Products segment.
The company’s primary location in Austin, Texas, includes a large clean room dedicated to space test engineering, assembly, and packaging, and its Penrose, Colorado, facility specializes in electronic component tape and reel packaging services.
The acquisition of Criteria Labs will enhance MPG’s ability to meet exacting Size, Weight, and Power (SWaP) requirements which are crucial for electronic warfare and communication systems. The integration of Criteria Labs’ advanced technology will allow MPG to innovate with more compact and lighter designs without compromising on performance and reliability.
About Dover:
Dover is a diversified global manufacturer and solutions provider with an annual revenue of over $8 bn. We deliver innovative equipment and components, consumable supplies, aftermarket parts, software and digital solutions, and support services through five operating segments: Engineered Products, Clean Energy & Fueling, Imaging & Identification, Pumps & Process Solutions and Climate & Sustainability Technologies. Dover combines global scale with operational agility to lead the markets we serve. Recognized for our entrepreneurial approach for over 65 years, our team of approximately 25,000 employees takes an ownership mindset, collaborating with customers to redefine what’s possible. Headquartered in Downers Grove, Illinois, Dover trades on the New York Stock Exchange under “DOV.” Additional information is available at dovercorporation.com. (Source: PR Newswire)
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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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