Saab AB has a definitive agreement to acquire air traffic management solutions and surveillance technologies firm Sensis Corporation for approximately $155 million in cash. Sensis will continue its U.S. operations as a subsidiary of the Saab group.
The acquisition is expected to decrease Saab’s earnings per share in 2011. It includes a potential earn-out payment of $40 million, which will be paid by 2014 if certain conditions are met.
The transaction is pending customary approval and is expected to be concluded in the third quarter of 2011.
Saab said by strengthening its radar, sensors, ATM and defense systems development offerings, the acquisition advances its strategy of increasing its presence in North America.
The company will look to grow from its combined installed base and skills in systems engineering, design and integration.
Sensis generated an estimated $130 million in revenues for the fiscal year ended June 2011. It has approximately 600 employees and more than 60 customers in more than 35 countries.
“This acquisition is in line with our ambition to focus on selected markets and grow our core business, ” said SAAB President and CEO Hakan Buskhe. “Sensis 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.”