Sponsored by SPX Communication Technologies (TCI & ECS)
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27 Dec 24. Baykar Technologies acquires Italian aviation giant Piaggio Aerospace. Turkish drone manufacturer Baykar Technologies has successfully acquired Italy’s Piaggio Aerospace, following approval from the Italian Ministry of Enterprises and Made in Italy. The deal marks a significant step for Baykar, the world’s largest unmanned combat aerial vehicle (UCAV) producer, which triumphed over international competitors to secure the historic aviation company. Piaggio Aerospace, established in 1884, is renowned for its P.180 Avanti business jets, known as the “Ferrari of the skies,” and its contributions to Italy’s defense sector. Baykar’s acquisition is set to preserve Piaggio’s legacy while enhancing its production capabilities, with a focus on maintaining employment opportunities in Italy. The deal was praised by Adolfo Urso, Italy’s Minister of Enterprises, who highlighted the company’s relaunch under Baykar’s leadership. He emphasised that the acquisition guarantees Piaggio’s future with a strong industrial vision, safeguarding jobs and production in Italy. Baykar, which has become a key player in the global UAV market, sees this acquisition as a strategic move to strengthen its presence in Europe. The Turkish firm plans to integrate Piaggio’s technology and workforce into its expanding portfolio, while enhancing its capacity for UAV production. (Source: Google/https://defence-industry.eu/)
24 Dec 24. Cohort plc (AIM: CHRT), the independent technology group, announces that, following the announcement on 21 November 2024, the acquisition of the entire issued share capital of EM Solutions Pty Ltd (“EM Solutions”), a subsidiary of Electro Optic Systems Holdings Limited, an Australian public company listed on the Australian Securities Exchange (ASX: EOS), is now expected to complete by end of February 2025. Any change in the net contribution from the acquisition of EM Solutions in the year ending 30 April 2025 is expected to be de-minimis.
22 Dec 24. The FT reported tonight that Palantir and Anduril, two of the largest US defence technology companies, are in talks with about a dozen competitors to form a consortium that will jointly bid for US government work. (Source: FT.com)
BATTLESPACE Comment: this is a procurement model which BATTLESPACE has been pushing for many years. It was highlighted at the recent C-UAS Conference at Chepstow in November where Denys Demko of the Ukraine gave an excellent speech highlighting that Ukraine’s weapons technology was refreshed every 6 weeks.
19 Dec 24. Hanwha closes $100m deal to take over Philly Shipyard. The deal is part of a series of aggressive moves Hanwha has taken to solidify its presence in the American defense industrial base this year. South Korean conglomerate Hanwha today announced it had closed its $100m deal to take a controlling stake of Philly Shipyard, capping off one of the company’s most aggressive moves this year to solidify its foot in the American defense industrial base.
“Hanwha Philly Shipyard begins an exciting new chapter today,” said David Kim, the newly appointed CEO of what is now called Hanwha Philly Shipyard. “We plan to grow and build on a long tradition of success, by expanding production using advanced technologies, and supporting the national revitalization of U.S. shipyards. Together, we begin working toward our vision for Hanwha Philly Shipyard: to be a trusted U.S. shipbuilder, challenging and redefining sustainable maritime solutions for commercial and government clients. We intend to do that by pushing the boundaries of shipbuilding by combining people with technology to build best-in-class vessels.”
A Hanwha executive told reporters in October that the company plans for Philly Shipyard to focus on securing US Navy contracts for specialty ships such as icebreakers, replenishment oilers and training vessels, but not warships such as destroyers. Hanwha made its initial offer to purchase Philly Shipyard, which until now was owned by the Norwegian industrial investment group Aker, in June. The shipyard, based in the eponymous city was once the site of a US Navy facility and has focused on producing container vessels and tankers under Aker’s ownership. In addition to acquiring Philly Shipyard, Hanwha this year also named Mike Smith to lead its American business unit, announced its first win of a repair contract for a US Navy ship and pursued, but ultimately dropped, a takeover bid submitted to Australian shipbuilder Austal, whose American subsidiary is a key contractor for the Pentagon. In the background of it all has been outgoing Navy Secretary Carlos Del Toro, who has made encouraging foreign investment into American shipyards a key element of his “Maritime Statecraft” initiative, as reported in this deep dive Breaking Defense report. He visited Hanwha and other Asian defense industrial giants early in the year and has publicly lobbied them to bring their money, technology and talents to benefit the US Navy. Those efforts have not always been welcomed by American industry. (Source: Reuters)
20 Dec 24. AAR CORP. (NYSE: AIR), a leading provider of aviation services to commercial and government operators, MROs, and OEMs, announced today that it has entered into a definitive agreement to divest its Landing Gear Overhaul business to GA Telesis. The transaction is valued at $51m and is expected to close in the first quarter of the 2025 calendar year, subject to customary and regulatory closing conditions. The divestiture will be immediately accretive to margins and earnings. The divestiture is part of AAR’s strategic plan to optimize its portfolio by investing in core functions that will accelerate its targeted growth and margin expansion initiatives. The transaction with GA Telesis includes AAR’s Miami, Florida, based Landing Gear Overhaul business, part of the Company’s Repair & Engineering segment, that provides full-service landing gear maintenance, repair, and overhaul services to commercial and government customers. AAR will remain prime contractor for the United States Air Force Landing Gear Performance Based Logistics contract, and the current maintenance services will be continued by GA Telesis as a subcontractor.
“This transaction will increase our operating margins, improve our cash flow and enable us to re-allocate resources to drive further growth in our core businesses,” said John M. Holmes, AAR’s Chairman, President and CEO. “We are confident GA Telesis will continue to deliver excellent service to the Landing Gear customers.”
CIBC Capital Markets served as AAR’s financial advisor, and Jones Day served as AAR’s legal advisor in this transaction.
19 Dec 24. VIAVI to Acquire Navigation Tech Pioneer Inertial Labs. VIAVI Solutions expands its positioning and navigation capabilities with the strategic acquisition of Inertial Labs. Viavi Solutions Inc. (VIAVI) has signed a definitive agreement to acquire Inertial Labs, Inc. for initial consideration of $150m at closing and up to $175m of contingent consideration over four years. Headquartered in Leesburg, Virginia, Inertial Labs is a leading developer, producer, and supplier of high-performance orientation, positioning, and navigation solutions for aerospace, defense, and industrial applications. Inertial Labs offers Inertial Measurement Units (IMU), Inertial Navigation Systems (INS), Assured Position Navigation and Timing (APNT), GNSS Tracking, LiDAR Scanning, Alternative Navigation (ALTNAV), and Visual Navigation solutions, which are highly complementary to VIAVI’s existing PNT and other aerospace and defense solutions. Additionally, Inertial Labs’ solutions include enabling utility inspection through LiDAR and photogrammetry algorithms and smart system navigation for airborne and autonomous ground vehicles to accelerate VIAVI’s entrance into industrial and autonomous delivery and transportation end markets. For the acquisition itself, VIAVI intends to fund the transaction through cash on hand, with the purchase expected to add approximately $50m to VIAVI’s Network and Service Enablement (NSE) annual revenue in calendar year 2025. It is also expected to be accretive to EPS within 12 months of closing. The acquisition has been approved by the Board of Directors of each company. It is expected to close during the first quarter of calendar year 2025, subject to certain regulatory approvals and customary closing conditions.
Jamie Marraccini, President and CEO of Inertial Labs, said, “We are excited that our expertise, precision solutions, and resources provide expansion opportunities for VIAVI in high-growth markets and applications such as drone-based LiDAR and camera systems.”
Oleg Khaykin, President and CEO of VIAVI, commented, “With a highly complementary product portfolio focused on alternate navigation solutions, this transaction supports VIAVI’s strategy to expand our presence in domestic and international aerospace and defense segments and accelerates our entry into autonomous air, land, and sea systems in the military and industrial end markets.”
This announcement comes as Inertial Labs begins its attendance at the Vietnam International Defense Expo 2024 from December 19-22 in Hanoi, at Booth B69. Here, present and future clients can explore the company’s innovative technologies for navigation, positioning, and defense applications. (Source: https://www.defenseadvancement.com/)
19 Dec 24. Aerospace firm AAR settles US charges over bribing foreign officials. Global aerospace company AAR Corp (AIR.N) agreed to resolve U.S. charges in connection with schemes to bribe Nepalese and South African officials, the U.S. Justice Department and the Securities and Exchange Commission said on Thursday. AAR agreed to pay more than $55m to resolve investigations by the Justice Department and the SEC into violations of the Foreign Corrupt Practices Act, which prohibits corrupt payments to foreign government officials, the Justice Department said. Deepak Sharma, a former AAR subsidiary executive, pleaded guilty in August for his role in the Nepal scheme, and Julian Aires, a third-party agent of AAR, pleaded guilty in July for his role in the South Africa scheme. AAR entered into an 18-month non-prosecution agreement with the Justice Department, the department said. The company confirmed the settlement in a statement of its own that said it had cooperated with authorities during the probe. AAR added it expects to fund these payments using a combination of cash on hand and borrowings under its revolving credit facility. (Source: Reuters)
20 Dec 24. VINCORION Reports Strong Growth and Projects Further Expansion in 2025. Technology company VINCORION has maintained its growth trajectory, reaching a milestone of EUR 200 m in revenue for 2024 – marking a substantial increase from the previous year. This positive development underscores the Wedel-based company’s robust position as a technology provider, with orders spanning from power generation systems for armed forces modernization, including generators for armored vehicles, to civilian aviation technology, such as the development of next-generation electric rescue hoists for helicopters.
“Our performance in 2024 demonstrates that German industry is taking its responsibility for national security seriously and is delivering the necessary capabilities,” says Managing Director Kajetan von Mentzingen. “The successful execution of key projects showcases the innovation potential and competence of Germany’s defense industry.”
Strategic Projects Gain Momentum
Notable achievements during the year included supplying critical components for the Leopard 2 main battle tank, such as observation modules for situational awareness and target acquisition, along with advancing power electronics development for the Puma infantry fighting vehicle. Of particular significance are new orders for the Leopard 2 from European nations.
For these and other tank platforms, VINCORION supplies the innovative GTD chaser modular weapon stabilization system, which the company unveiled at the Eurosatory defense exhibition in Paris in summer 2024. This system is implemented in current and future generations of the Leopard 2, as well as the PzH 2000 self-propelled howitzer and other vehicles.
The company’s Altenstadt facility in Bavaria focuses on manufacturing power generators for the Bundeswehr (German Armed Forces) and air defense systems for German and allied armed forces. The Essen facility primarily produces generators that deliver significant performance enhancement for the Boxer armored vehicle. VINCORION’s U.S. subsidiary ensures spare parts supply for the Patriot air defense system.
Growing Public Support
“Recent developments underscore the necessity to steadily advance Bundeswehr modernization,” explains von Mentzingen. “Our objective must be to substantially strengthen Germany’s defense capabilities by 2029. This requires sustained investment in modern equipment and forward-looking technologies.”
A recent representative study by the Bundeswehr Center for Military History and Social Sciences reveals a fundamental shift in public perception. “The findings are remarkable,” notes von Mentzingen. “82 percent of the 2,000 respondents expressed favorable views of the Bundeswehr, indicating increased public recognition of our armed forces’ significance.”
Particularly notable is the marked increase in support for higher defense spending: while only 41 percent favored an increase three years ago, that figure has risen to 58 percent. “This significant uptick confirms a fundamental shift in public awareness,” von Mentzingen emphasizes. “There is growing recognition that security and defense capabilities come at a cost.”
“The broad support for meeting NATO commitments is especially significant,” von Mentzingen adds. “70 percent of respondents support fulfilling financial commitments – representing a clear mandate for policymakers.” These figures also indicate the public’s realistic understanding of security policy challenges. Additional data is available in the appendix.
Future Investment Requirements
“Sustainable modernization of our armed forces will require additional investment,” von Mentzingen explains. “The previous special fund was an important first step. We now need to consider increasing defense spending to 2.5-3 percent of GDP to achieve our objectives.”
“Our international customers are seeking enhanced support from the German government for procurement of German systems,” the Managing Director reports. “The United States sets an example: their government acts as a partner, provides political backing for business, and establishes clear processes. We need a similar framework in Germany – it builds trust and enhances our attractiveness as a supplier.”
Collaborating with French or Italian industry partners presents challenges for German companies, von Mentzingen continues: “Each country maintains different regulations regarding military equipment supply. This unnecessarily complicates joint projects. We need standardized European regulations – otherwise, German companies risk exclusion from crucial future initiatives.”
Expanding Civilian Market Expertise
Beyond its core defense sector operations, VINCORION continues to strengthen its civilian market position. “Our technological expertise, particularly in power supply and drive technology, has significant civilian applications,” explains von Mentzingen. A current example is the development of next-generation helicopter rescue hoists, combining superior safety standards with cutting-edge technology.
Workforce Growth and Training Excellence
The company’s success is reflected in its expanding workforce, which grew to approximately 900 employees by 2024, with 550 based at the Wedel facility. “This growth underscores our attractiveness as an employer,” says HR Director Nina Römhild. The low turnover rate of less than three percent demonstrates high employee satisfaction.
VINCORION maintains a strong commitment to training: approximately 50 young people are currently enrolled in apprenticeships or dual-study programs. Programs range from electronics technician training for devices and systems to industrial engineering. “Training qualified specialists is central to our future strategy,” Römhild emphasizes.
“We see further growth potential for 2025,” says von Mentzingen. “Our innovative products and dedicated employees position us ideally to support armed forces modernization. We rely on close collaboration with all stakeholders.”
About VINCORION
VINCORION is a technology company headquartered in Wedel near Hamburg, with additional facilities in Germany and the United States. With approximately 900 employees, the company develops and manufactures innovative solutions in power systems, generators, power electronics, and stabilization and lifting systems.
The company brings decades of experience and unique engineering expertise, particularly in electrical power generation, conversion, storage, and management. This expertise serves both the security and defense sector and civil aviation.
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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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