Spanish technology company Indra, which specialises in the civil aerospace and defence industries, announced today that it has signed a binding agreement to acquire the Selex ES air traffic management product business line from Italian industrial group Leonardo.
The sector designs and produces air navigation aid systems, known as NAVAIDS (acronym for Navigatonial Aids). According to Indra, after the acquisition, the business line will be renamed as Indra Air Traffic.
The acquisition will allow Indra to enhance its product portfolio. From now on, the Spanish company will offer the only distance measuring equipment (DME) certified by the United States Federal Aviation Administration (FAA). In addition, it will market a new VOR (Very High Frequency Omnidirectional Radio) and a TACAN (Tactical Air Navigation System), which provides heading and distance information for civil and military aircraft.
Selex ES also holds a significant market share in the instrument landing systems (ILS) segment. It is particularly strong in the United States, where it supplies the Air Force and the Navy. For its part, Indra is currently one of the world’s leading suppliers of military and civilian radars. The Spanish company is one of the most chosen ones among NATO member countries.
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With the acquisition, Indra’s new business will strengthen the company’s position in North America. This way, it mantains good prospects about future contracts for the maintenance of ground-based air navigation support infrastructures. The company is currently pursuing other air traffic management programmes in Central Europe and Asia. It reported that it is experiencing strong growth in its product order book in this segment.
While the final purchase process has yet to go through the required approval reviews, the transaction could be completed during the first quarter of 2023.
«The combination of Indra and the assets acquired from Selex in the United States will provide important synergies for our aerospace and defence business in that market, currently the largest in the world, and for the Federal Aviation Administration’s impending infrastructure renewal programmes», said Ignacio Mataix, CEO of Indra.
«This acquisition, the most significant purchase we have made to date in the United States in the air traffic management sector, will consolidate us as a global player of reference in the industry, particularly in the air navigation aid systems segment» Mataix added.
See also: France: Indra to install radar systems in three military airfields