Indra Buys Park Air Systems Norway for EUR42 M

Indra has bought 100% of the shares in the air traffic management systems company Park Air Systems Norway from its owner Northrop Grumman Denmark. The transaction values Park Air Systems’ Norway business at an enterprise value of 42 M€. 

Park Air Systems Norway’s global consolidation into Indra, expected by May, increases Indra’s 2012 revenues growth target from 6.5%-7.5% up to 8%-9%, with all other targets remaining unchanged.

This deal enlarges Indra’s portfolio of Air Traffic Management systems (ATM), complements the range of solutions being offered by Park Air Systems Norway, and creates opportunities for both companies to realise significant synergies. Indra is one of the leading players in the global market for air traffic management systems, with more than 1,200 facilities in 95 countries and more than 30 years of experience.

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The Norwegian company is well-recognised in the air traffic management business. It is the global leader in the landing systems market with its NORMARC brand and is well positioned in voice communication control systems and in systems for the surveillance and guidance of aircraft at airports, under the GAREX and NOVA brands respectively.

Park Air Systems Norway has more than 1,000 contracts in 111 countries. Its customers include the world’s leading air traffic management agencies and airport managers.

Park Air Systems Norway has a total workforce of 174 spread across its Oslo and Horten facilities and its sales offices in France, China, Malaysia, and the United Arab Emirates. The execution and delivery of all current programmes being undertaken by Park Air Systems Norway will continue in their normal course, and the company's customers, suppliers and employees will be unaffected by this change in ownership.

Following the acquisition, the Norwegian company will be re-named Indra Navia, a return to using the name Navia Aviation under which it was originally founded. Indra Navia will operate as an independent Indra subsidiary.

Park Air Systems Norway reached revenues of 53 M€ in 2011. Indra expects that the integration of Park Air Systems Norway within Indra will allow it to increase materially the company’s revenues by at least double digits and its profitability to reach around double digits.

The acquisition of Park Air Systems Norway forms part of a series of purchases made by Indra in order to strengthen its position in the air traffic and airport management systems market. In 2007, it bought the Australian radio navigation aids company Interscan; and in 2008 and 2009, it bought the German companies, AC-B and Avitech, respectively which bolstered its position in the aeronautical communications market.

Source: Indra
Date: Apr 18, 2012