05 Dec 23. Reuters reported tonight that German defence contractor Hensoldt (HAGG.DE) said on Tuesday it acquired defence systems integrator ESG Elektroniksystem for an enterprise value of 675m euros ($727.79m), along with an earn-out of up to 55m euros.
Hensoldt’s key shareholders, Germany and Italy’s state-controlled defence and aerospace group Leonardo (LDOF.MI), also support the deal. It expects nearly 19m euros in run-rate annual cost synergies in addition to revenue synergies from cross-selling.
The defence company intends to finance the acquisition through a potential capital increase of up to 10% of its current share capital and new debt of about 450m euros.
Leonardo will not be participating in the capital increase but Germany, through state lender KfW, which holds a 25.1% stake in Hensoldt, intends to participate.
ESG is a manufacturer-independent systems integrator and technology and innovation partner for defence and security.
The acquisition is expected to be completed in the first half of 2024. ($1 = 0.9275 euros)
(Source: Reuters)