Saab strikes deal to acquire Sensis

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Saab has signed an agreement to acquire Sensis Corporation for $155 million in a bid to increase its presence in North America.

Sensis provides air traffic management solutions and surveillance technologies.

The deal includes a potential earn-out payment of up to $40 million by 2014, dependent on certain conditions, which could increase the total value of the transaction to $195 million.

Saab will fund the acquisition with existing cash. The deal is expected to close in the third quarter of 2011, pending government approval.

Following the acquisition, Sensis will continue its operations in the USA as a subsidiary within the Saab Group.

"The acquisition is in line with our ambition to focus on selected markets and grow our core business," said Saab chief executive Hakan Buskhe. "By combining our product portfolios, we gain a stronger position and broaden our market offering."

Added Sensis chief Jud Gostin: "[T]he coupling of Sensis' and Saab's air traffic management and civil security portfolios will provide a new level of ATM solutions."

Sensis employs about 600 people worldwide. Its estimated revenues for the fiscal year to June 2011 are $130 million.