Cassidian to acquire majority stake in Carl Zeiss Optronics

Cassidian has agreed to acquire 75.1 per cent of the optronics division run by Carl Zeiss, in a move hailed by both companies as a major boost for their market prospects.

Carl Zeiss will retain the remaining 24.9 per cent of the business under an accord signed with Cassidian's parent company, EADS, on 13 July. The deal is subject to regulatory approvals. Terms were not disclosed.

Germany-based Carl Zeiss Optronics employs about 780 people and will become part of Cassidian's sensors and electronic warfare business line. The acquisition includes a site and job security guarantee until 2015, said Cassidian.

Michael Kaschke, president and chief executive officer (CEO) of Carl Zeiss, said the company's "greatest concern" was to "provide optronics with a successful, long-term future".

"In a market that has to cope with the drastically sinking defence budgets of NATO states and profound upheavals in regions such as Asia and North Africa, first-class market access and the strength of a globally leading company are among the most important factors for success," he said.

"Cassidian possesses both of these assets. We are confident that optronics has better perspectives at Cassidian than at Carl Zeiss."