Frequentis AG has signed an agreement to acquire the ATM voice communications and arrival management product business from L3Harris Technologies. The acquisition will cost US$20.1M (€16.58M) and is subject to customary net debt and working capital based purchase price adjustments at Closing.
The transaction comprises the acquisition of
- the ATM voice communication systems product line of L3Harris, USA
- the Harris ATC Solutions business unit of Harris Canada Systems Inc., Gatineau, Canada
- 100 per cent of the shares in Harris C4i Pty. Ltd., Melbourne, Australia
- 100 per cent of the shares in Harris Orthogon GmbH, Bremen, Germany
The two companies have also entered into cooperation agreements where Frequentis, as an L3Harris’ technology partner, will provide voice communication products for use in L3Harris’ large-scale solutions and services business.
This transaction marks a significant step in Frequentis’ growth strategy and will complement Frequentis’ portfolio for the civil and defence ATM sector. Moreover, Frequentis adds the leading arrival and departure management solutions from L3Harris Orthogon to its offering. This is a next stage in Frequentis’ strategy for ATM, in line with the previous acquisitions of Comsoft and ATRiCS.
Benefits of the deal
Frequentis expects to benefit from significant enhancements in its ATM portfolio and market access:
- Australian-based C4i will be complementing the Frequentis ATM defence portfolio by its high secure interoperable communications solutions for mission-critical environments.
- Frequentis will continue to market Germany-based Orthogon’s leading products for traffic synchronisation for ATC en-route, approach and airport ATC centres, including them in their offering for digital towers and centres.
- By acquiring the Harris ATC Solutions business unit of Harris Canada Systems, Frequentis will expand its technical solutions and add an even wider range of solutions to its already extensive portfolio. This will further strengthen Frequentis’ capabilities as a global supplier of ATM communications solutions, particularly in the stream of large-scale IT based systems.
The transaction is expected be completed in the second half of the year 2021 and is subject to competition clearance and regulatory approvals. The transaction consideration will be financed from Frequentis’ cash resources and existing credit lines. Following completion of the acquisition, Frequentis AG will retain a strong balance sheet and liquidity position.