Astrium, the aerospace subsidiary of EADS, said it has entered into an agreement to acquire a 66.78% stake in Italy-based Space Engineering.
Financial details were not disclosed, but SatelliteFinance understands no advisers were hired for the…
Astrium, the aerospace subsidiary of EADS, said it has entered into an agreement to acquire a 66.78% stake in Italy-based Space Engineering.
Financial details were not disclosed, but SatelliteFinance understands no advisers were hired for the transaction and that the deal was financed with Astrium’s existing cash.
Space Engineering specialises in digital telecommunications, RF and antenna equipment engineering for both space and ground-based applications. More specifically, the company develops telecoms, navigation
and remote sensing applications for both the civilian and defence sectors. It also makes ground-based telecom hardware and antennas, as well as facilities for the assembly and testing of space equipment.
The CEO of Astrium, François Auque, stated: “This acquisition reinforces our commitment to Italy, a key player in space, and we will build upon Space Engineering’s established product offering, in developing
competitive and innovative technologies As a trusted partner of both the Italian and European Space Agencies, Space Engineering will further strengthen our portfolio, enabling us to provide cutting-edge digital telecommunications and RF technologies – essential for our institutional and commercial customers.”
The deal, if approved, would mark Astrium’s second milestone transaction in just a few weeks. On 19 December, Astrium Services, a unit of Astrium, completed the acquisition of satellite communication services company Vizada for US$960m after obtaining European Commission approval.
These two transactions form part of EADS’ attempt to bolster its non-Airbus businesses through bolt-on acquisitions, known as the Vision 2020 strategy. First outlined in January 2008, this strategy aims to help generate turnover of approximately €20bn by 2020 and reach a 50/50 balance between Airbus’ revenues and other divisions’ revenues. To achieve this, EADS has about US$15bn in available cash.