Saab to Acquire Medav
Defence and security company Saab AB has acquired 100 percent of the German company Medav, specialised in the application of signal processing, pattern recognition and information technology, for approximately MEUR 27 (about MSEK 229). The acquisition strengthens Saab’s product portfolio within radio monitoring and intelligence fusion systems.
Medav is a leading provider of signal, electronic and communication intelligence. The acquisition advances Saab’s position in radio monitoring and intelligence fusion systems and strengthens the market presence globally as well as in Europe. The acquisition provides a growth platform from which Saab can build on the combined installed base and skills in systems engineering, design and integration. Medav customers and partners will benefit from Saab’s overall product portfolio and global support operations.
Medav will continue operations in Germany as a fully owned subsidiary within the Saab Group.
The consideration amounts to approximately MEUR 27 (about MSEK 229). In addition, the parties have agreed on a potential earn out payment of maximum MEUR 7 (about MSEK 59.5). Saab will use existing funds to finance the acquisition.
"This acquisition strengthens our position within the strategically important field of radio monitoring and intelligence fusion systems. Medav has complementing product lines and is well-positioned on several key markets. By combining our product portfolios, we gain a stronger position and broaden our market offering," says Håkan Buskhe, President and CEO, Saab AB.
“Saab and Medav have a combined offering which makes us strong on the market for advanced signal, electronic and communication intelligence. The combined engineering skills of our two companies make us highly competitive on an ever more challenging international market,” says Dr Hans-Joachim Kolb, CEO and Founder, Medav GmbH.
Medav has a 30-year history in digital signal processing technology in products and systems. The workforce of approximately 75 highly qualified employees services a global base of more than 50 customers located in more than 15 countries in Asia, the Middle East, Europe and South America. The company’s estimated revenue is about MEUR 21.9 (about MSEK 186) for the fiscal year ending December 2012.
The transaction is pending approval from, among others, competition authorities in Germany and closing is expected in the fourth quarter of 2012.
Source : Saab AB (OMX Stockholm: SAAB B)