SOUTH AFRICAN ACQUISITION FOR SAAB
Saab has signed an agreement to acquire Aerospace Monitoring and Systems (Pty) Ltd. (AMS) in South Africa. AMS focuses on proprietary aircraft monitoring and recording systems for the global aerospace and defense market. The company is based in Midrand, has a turn over of 58M Rand and employs 75 people. The acquisition is valued at 30M Rand and, subject to approval by the regulatory authorities, is likely to be effective beginning of April 2006.
Upon completion of the deal AMS will be part of Saab Avitronics, a Saab business unit focusing on avionics and electronic warfare systems, which already has operations in both Sweden and South Africa. Like Saab Avitronics' current electronic warfare operations in South Africa, AMS will, from a legal point of view, be part of Saab Grintek Defence (Pty) Ltd., which is jointly owned by Saab Grintek (Pty) Ltd. and Saab AB.
The acquisition is another step in Saab's strategy to actively participate in the consolidation of the international defense industry within its strategic niches as well as continuing its expansion in South Africa. "AMS' product portfolio and markets fit very well into our avionics business," said Saab Avitronics' president, Björn Erman. "Especially in the areas of safety, monitoring and digital recording systems, where together we will be a significant global player."