Saudi Arabian Military Industries says it has acquired Advanced Electronics Company in deal expected to close in Q1 2021
Saudi Arabian Military Industries (SAMI), a subsidiary of the kingdom's Public Investment Fund (PIF), has announced that it has acquired Advanced Electronics Company (AEC) as part of the largest military industries deal ever concluded in the country.
The purchase is expected to complete in the first quarter of 2021 following regulatory approvals and as a result AEC will become a 100 percent Saudi-owned company.
The value of the deal was not disclosed.
Since 1988, AEC has played a leading role in the fields of modern electronics, manufacturing, system integration, and repair and maintenance services.
The company has witnessed steady growth in sales in recent years. In 2019, net sales reached SR2.32 billion, up from SR2.07bn in 2018.
Ahmed Al-Khateeb, chairman of SAMI, said: “This deal strengthens SAMI’s presence in the strategically important defence industries market and supports its plans to transfer and localise the military industries. The acquisition will also enhance AEC’s opportunities to expand and compete in its field.”
Al-Khateeb added: “Considered the ‘crown jewel’ of Saudi Arabia’s military industries and a proud accomplishment for its citizens, AEC will bring about transformative change in the kingdom’s defence sector by enhancing the industry’s competencies and advancing innovation... the acquisition will shape the future of the domestic defence ecosystem and make long-lasting contributions to the national economy for the upcoming years, through skills development, employment generation, and exports.”
SAMI’s acquisition of AEC supports its strategic plan, which aims to expand its business and enter the progressive defence electronics sector.
Abdulaziz Al-Duailej, CEO of AEC, said: “SAMI’s acquisition of AEC stock will help us reach our goals and strategic plans for the next five years. It also places us under the umbrella of PIF, the Saudi sovereign wealth fund, which constitutes a milestone for the company and fills us with pride as directors and employees.”
Al-Duailej added: “The deal will provide AEC with the opportunity to further strengthen its position in the military industries market and explore new horizons in advanced technologies in the kingdom and beyond, as well as support the continuous development of the capacities of national cadres.”
Launched in May 2017, SAMI is a state-owned military industries company working under the directives outlined in the Saudi Vision 2030 and is aiming to be among the top 25 military industries companies in the world by 2030.