Finmeccanica to acquire DRS Technologies

Tuesday, 17 June, 2008

Last month, Finmeccanica (Stand E200a) and DRS Technologies (Stand J200a), two leaders of integrated defence electronic products, systems and support, announced the signing of a definite merger agreement under which Finmeccanica will acquire 100 per cent of DRS.
The transaction is valued at approximately $5.2bn (€3.4bn), inclusive of some $1.2bn in net debt. DRS will operate as a wholly owned subsidiary. The transaction allows Finmeccanica to consolidate its international role and enter the US market as a key player, and enables DRS to seek new business opportunities in the US and abroad.
“This transaction is a perfect fit; the complementary technologies and platforms will establish a new competitive player in defence and security markets in the US and around the world,” said Pier Francesco Guarguaglini, chairman and CEO of Finmeccanica. Mark S Newman, chairman of the board, president and CEO of DRS, added: “This investment in DRS will mean the combined company will be able to compete for and win additional contracts around the world, accelerating growth.”