Hensoldt Germany

[Bürküt]

HENSOLDT acquires ESG Elektroniksystem- und Logistik-GmbH​

Acquisition is expected to be completed in H1 2024​

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• HENSOLDT acquires ESG Elektroniksystem- und Logistik-GmbH (“ESG“) from an investment vehicle managed by Armira Beteiligungen GmbH & Co. KG (“Armira”). ESG is a leading German defence systems integrator with low double-digit annual revenue growth.

• The highly complementary, high-growth acquisition accelerates HENSOLDT’s sensor solutions strategy by building on ESG’s leading innovation, software engineering and systems integration expertise.

• Transaction valued at an enterprise value of EUR 675 million plus an earn-out of up to EUR 55 million based on specific performance targets to 31 December 2024, implying an EV/EBITDA 2024E of ~10x post run-rate cost synergies.

• The acquisition is expected to be highly value creative and financially accretive.
  • Accretive to HENSOLDT stand-alone revenue growth and FCF generation
  • EPS accretive by year 2 including cost synergies only and double digit accretive by year 4 including cost and revenue synergies.
  • ROIC above WACC by year 4 including cost synergies only and by year 3 including cost and revenue synergies.

• The transaction has full support of HENSOLDTs two key shareholders the Federal Republic of Germany and Leonardo S.p.A.

• The acquisition is expected to be completed in H1 2024, subject to certain conditions, including obtaining necessary regulatory approvals.

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Taufkirchen, 5 December 2023 – The HENSOLDT Group (“HENSOLDT”) today announced that it has signed a definitive agreement to acquire ESG Elektroniksystem- und Logistik-GmbH (“ESG”), from an investment vehicle managed by Armira Beteiligungen GmbH & Co. KG (“Armira”). ESG is a leading platform-independent systems integrator as well as established technology and innovation partner for defence and security. With the acquisition of the highly complementary defence technology business of ESG, HENSOLDT expands its business with strong design and systems integrator capabilities.


Thomas Müller, CEO of the HENSOLDT Group, says: “The acquisition of ESG is an excellent fit with our overall strategy and accelerates HENSOLDT’s development as a solution provider for defence and security. By combining highly complementary capabilities from HENSOLDT and ESG, we are taking a decisive step towards becoming a leading European provider of seamlessly integrated solutions. This will put us in an ideal position to meet the existing and future requirements of our customers around the world.”


Christian Ladurner, CFO of the HENSOLDT Group, says: “The acquisition of ESG is an excellent opportunity to take our business to the next level. ESG exhibits strong growth and cash conversion given its capex-light business model. We have identified significant cost and revenue synergies which will drive attractive value creation while maintaining our discipline in capital allocation and net leverage.”

HENSOLDT acquires ESG Elektroniksystem- und Logistik-GmbH

HENSOLDT acquires ESG Elektroniksystem- und Logistik-GmbH (“ESG“) from an investment vehicle managed by Armira Beteiligungen GmbH & Co. KG (“Armira”). ESG is a leading German defence systems integrator with low double-digit annual revenue growth.

www.hensoldt.net

 

[Bürküt]

Starting gun sounds for Germany’s advanced short- and very short-range air defence system​

Development contract awarded​

Germany’s military procurement agency, the Federal Office for Bundeswehr Equipment, Information Technology and In-Service Support (BAAINBw), signed a development contract today with the Short- and Very Short-Range Air Defence System Consortium (ARGE NNbS) for the “Air Defence System, Short- and Very Short-Range”, or LVS NNbS. Set up in 2021, ARGE NNbS has three member companies: Rheinmetall Electronics GmbH of Bremen, Diehl Defence GmbH & Co. KG of Überlingen, and Hensoldt Sensors GmbH of Taufkirchen. The contract is worth around €1.2 billion (including VAT), with Rheinmetall accounting for €607 million, Diehl for €339 million, and Hensoldt for €284 million, reflecting their respective workshares.


Making sure that Germany lives up to its role as NATO’s lead nation in ground-based air defence and the European Sky Shield Initiative, the introduction of the LVS NNbS is a decisive step, closing one of the Bundeswehr’s significant capability gaps.


The core objective of the LVS NNbS development project is to optimize medium-range air defence as well as developing high-mobility air defence capabilities for protecting manoeuvre forces from aerial threats – even when on the move.


Key objectives include achieving the necessary networking of individual components; integration of the medium-range IRIS T-SLM guided missile; assuring interoperability; and extending the intercept zone to include short-range threats.


Networking will enable connection to the IRIS T-SLM fire units currently under procurement as well as to the Skyranger 30 ground-based mobile air defence system, to be procured in future.


The project is in the hands of the German defence industry; ARGE NNbS is the German government’s contract partner.


By bundling complementary core capabilities – including those of other German defence contractors – ARGE NNbS brings together the foundational knowledge, capabilities and expertise needed to meet the requirements. In the process, key technologies will stay in Germany, where they will be be preserved and perfected.


Rheinmetall and its Electronic Solutions and Vehicle Solutions divisions bring technological know-how and longstanding experience in the development and delivery of defence systems, especially in combat vehicles, communications and systems integration.


Diehl Defence specializes in developing and fabricating guided missiles. Thanks to its advanced system solutions for ground-based air defence, it is established force in the international market.


A supplier of key national technologies, Hensoldt brings to the working group its expertise and tried-and tested products such as radar systems. These products feature comprehensive commonalities based in part on product family concepts, primarily in airspace surveillance, classification and identification.

Starting gun sounds for Germany’s advanced short- and very short-range air defence system

Germany’s military procurement agency BAAINBw signed a development contract with the consortium ARGE NNbS (HENSOLDT, Rheinmetall, Diehl Defence) for the “Air Defence System, Short- and Very Short-Range”.

www.hensoldt.net

 

[Bürküt]

Accelerator for the Future Combat Air System successfully completed​

Start-ups selected​

Taufkirchen, 12 February 2024 – Thirteen weeks of intensive work lie behind them: In August 2023, HENSOLDT Ventures and Starburst invited start-ups and mentors to apply for the Future Combat Air System (FCAS) Accelerator. The aim of the accelerator was to create an ecosystem for small and medium-sized enterprises (SMEs) and start-ups to develop dual-use and defence applications for FCAS. The results of the FCAS Accelerator were presented at the closing event in Taufkirchen, with Member of the Bundestag Florian Hahn, HENSOLDT CEO Thomas Müller and HENSOLDT Chief Strategy Officer Celia Pelaz also in attendance.


“For the future-oriented FCAS project, we need new ideas and the courage to implement them  – which is why we focused explicitly on players who are not yet firmly anchored in the security and defence industry. With the accelerator, we set ourselves the goal of identifying and selecting first-class innovators,” said Celia Pelaz, Chief Strategy Officer at HENSOLDT. “We have succeeded in doing just that.”


Almost 70 companies responded to the call to apply for the accelerator. HENSOLDT and the CPT selected nine of them for a boot camp with twelve mentors, focusing on the discovery and development of solution concepts for FCAS and examining long-term integration into the FCAS programme. This included an exchange with military leaders, but also a presentation of the NATO Innovation Fund, the European Defence Fund (EDF) and the EU Defence Innovation Scheme (EUDIS).


“The three start-ups we will be working with for FCAS are focusing on artificial intelligence, disruptive sensors and electronic materials and components, respectively. More specifically, this involves a new type of chip-based parallel computing cloud platform, the development and production of cooled high-end infrared detectors and new types of metal bonding processes with higher conductivity and efficiency,” explained Moritz Pichler, Executive responsible for HENSOLDT Ventures. There will also be collaboration with two other start-ups.


Member of the German Bundestag Florian Hahn, CSU, paid tribute: “What we are seeing today at the FCAS Accelerator closing event is that start-ups are able to make a decisive contribution to high-tech projects.” He added: “They all represent what we need in Germany and Europe: Courageous people who are pioneers and develop technology that will determine our security in the future.”


A further accelerator programme is currently being planned and could start as early as autumn 2024.

Accelerator for the Future Combat Air System successfully completed

Start-ups selected

www.hensoldt.net

 

[Bürküt]

HENSOLDT supplies all-round vision system for self-propelled wheeled howitzer from KNDS​

Oberkochen/Germany, 1. March 2024 – The sensor solution provider HENSOLDT has sold its all-round vision system SETAS (See Through Armour System) to KNDS in Germany. The order comprises a total of 54 units. The order value is in the double-digit million range. SETAS will be integrated into the customer's RCH 155 self-propelled artillery gun.


SETAS is a high-performance day and night observation system for armoured vehicles of all kinds. The high-resolution electro-optical vision system gives every crew member the opportunity to obtain full visual situational awareness 360 degrees around the vehicle from inside the vehicle. Threats within their radius of action can be reliably identified and classified at an early stage. The modular system comprises two high-performance sensor systems: high-resolution colour daylight cameras and uncooled thermal imaging cameras.


"With the initial integration, we are equipping our customer and the user with a revolutionary sensor solution in the field of all-round visibility," says Tanya Altmann, Head of Optronics & Land Solutions at HENSOLDT. "The system will realise its full potential when it is connected to the vehicle network and the battle management system and provides crew members with the best possible information sovereignty using AI-supported sensor fusion. With this launching customer, HENSOLDT is therefore consistently continuing its growth path as a solution provider."


In a further configuration step, the observation capabilities of SETAS can be enhanced with integrated automatic image processing functions such as Moving Target Indication (MTI), object tracking and other modes. This makes it easier for the crew to cope with the large amount of image data for personal 360-degree situational awareness. Thanks to its modularity and open interface architecture (NGVA-compliant), this observation system can be easily integrated into any new or existing vehicle. The interface allows full integration or standalone operation by supporting any type of HMI (standard or smart display, smart glasses, tablet, etc.).


Using a helmet-mounted display as an HMI, a crew member inside the vehicle can practically see through the armour and thus achieve the same orientation as when observing "from above". Intelligent software algorithms automatically warn the crew if a potentially threatening movement is detected in the vicinity of the vehicle. SETAS can be installed as a stand-alone system, providing crews of both legacy platforms and new systems with significantly increased situational awareness.

HENSOLDT supplies all-round vision system for self-propelled wheeled howitzer from KNDS

www.hensoldt.net