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Saab acquires Ericsson Microwave Systems

Communications>Military/Aerospace>Rest of Europe>Merger Acquisition
18/06/2006 15:13:32 :

Saab is acquiring Ericsson Microwave Systems (EMW) which has approximately 1250 employees in Gothenburg, Sweden.
 
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The acquisition adds radar and sensor operations to Saab's product portfolio in defence, aviation, space and civil security. The purchase sum is SEK 3,8 billion. The purchase also includes the Ericsson 40 percent share in Saab Ericsson Space, a subcontractor for equipments to commercial satellites.

Saab and EMW have been working closely together for a long time. EMW currently delivers the radar for the Gripen fighter. The acquisition enables Saab to create scope of action to secure the Gripen's long-term development.

EMW's defence operation has supplied more than 3000 radar systems in over 30 countries. EMW's operations within National Security and Personal Safety as well as Power Systems, with a total of 300 employees, will remain part of Ericsson.
The defence operation within EMW has sales of approximately 2 billion SEK and at the start of 2006 had order backlog of approximately 3.5 billion SEK. Exports make up approximately 65 percent of turnover.

In an other deal, Ericsson offered €30 million to buy the IP-telephony and communication specialist Netwise.
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