Saab paid $150 million in cash for the firm and could pay up to $40 million more in earn-out fees if the firm fulfills certain conditions by 2014 as its Saab Sensis Corporation subsidiary.
The acquisition is expected to decrease Saab’s earnings per share in 2011.
Sensis employs approximately 600 workers and its customers include 54 of the world’s 100 largest airports. The company generated around $173 million in revenues for the fiscal year ended July 2010.
“We see good potential to expand the company’s existing product portfolio, leveraging other Saab technology such as our C4I solutions, to further increase our reach into the U.S. defense market, ” said Saab AB President and CEO Hakan Buskhe. “As a result of the identified significant medium- to long-term operational synergies as well as from a sales and marketing perspective, we believe the acquisition will be value enhancing.”