Indra signs binding agreement to acquire from Leonardo, Selex ES Inc’s Air Traffic Management line of business to enter the USA and consolidate its global leadership
This line of business, which will be incorporated as Indra Air Traffic Inc., designs and manufactures navaids (air navigational aid systems) in the United States and markets them worldwide.
The assets that Indra will acquire, include the only FAA-certified DME. The acquired line of business is also a key supplier for the USAF and Navy and it has developed a new TACAN.
This acquisition will position Indra as a top-tier global player in the navaid segment.
Indra, a leading global technological engineering technology for the aerospace, defence and mobility sectors, has acquired the Air Traffic Management line of business from within Selex ES Inc. (Leonardo Group) and is set to incorporate it into Indra Air Traffic Inc.
Selex has installed air traffic navigation systems in 110 countries. The acquisition will enhance Indra’s product portfolio with solutions such as the only Distance Measuring Equipment (DME) fully qualified by US Federal Aviation Administration (FAA), a recognized VOR used for en-route and approach navigation, and a TACAN, providing navigational information to military and civilian aircraft. Selex also holds a solid market share within instrument landing systems (ILS), in particular in North America as the sole provider to the US Air Force and US Navy.
Based in the US, the acquired business will strengthen Indra’s position before the anticipated sustainment of air navigation service infrastructures in the United States. Indra is a front runner in digitizing and greening Air Traffic Management with a strong R&D linked to the European Single Digital Sky. Indra is the technology partner for developing and deploying iTEC (Automation Systems for ATM; main European Control Centres) and Flow Management (Eurocontrol). Currently is launching large ATM/CNS programmes in Central Europe and Asia. After a slow-down during the pandemic crisis that impacted the whole industry, the company is experiencing high double digits growth in the air traffic contracts backlog.
“The combination of Indra and the assets acquired from Selex in the United States will yield important synergies for our Aerospace and Defense business in the current US market, currently the largest in the world, and the upcoming Federal Aviation Administration programs to renew infrastructures. This acquisition, to date our most significant purchase in the ATM (Air Traffic Management) market in the US, will establish us as a major global player throughout the sector, particularly in the air navigational aid system segment”, said Indra CEO Ignacio Mataix.
The transaction is expected to be completed in the first quarter of 2023 as is subject to customary regulatory approvals, including the clearance from CFIUS (Committee on Foreign Investment in the United States).
About Indra
Indra (www.indracompany.com) is one of the leading global technology and consulting companies and the technological partner for core business operations of its customers worldwide. It is a world-leader in providing proprietary solutions in specific segments in Transport and Defense markets, and a leading firm in Digital Transformation and Information Technologies in Spain and Latin America through its affiliate Minsait. Its business model is based on a comprehensive range of proprietary products, with a high-value, end-to-end focus and with a high innovation component. In the 2021 financial year, Indra achieved revenue of €3.390 billion, with over 52,000 employees, a local presence in 46 countries and business operations in over 140 countries.
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