Swedish defence manufacturer Saab is to acquire the radar and sensor business of telecommunications specialist Ericsson, Ericsson Microwave Systems (EMW) for SKr3.8 billion ($276 million).
As part of the deal, which is expected to be completed in September, Saab takes over the 40% stake Ericsson held in Saab Ericsson Space. “This is a strategically important, long-term deal for Saab,” says Saab president and chief executive Åke Svensson. He adds that it will give Saab opportunities to develop the Gripen radar system, which EMW currently supplies, and could lead to new business in areas such as airborne surveillance.
Saab’s full ownership of Saab Ericsson Space “increases the potential to consolidate Saab’s position as Europe’s largest subcontractor for equipment to commercial satellites,” the company adds.
EMW will be known as Saab Microwave Systems and become part of Saab’s systems and products business unit.