Saudi Arabian Military Industrieshas announced the signing of an agreement to acquire 100% ownership in Advanced Electronics Company
Saudi Arabian Military Industries (SAMI) has announced the signing of an agreement to acquire 100 percent ownership in Advanced Electronics Company (AEC).
SAMI said its investment in AEC, the Riyadh-based firm, is part of its efforts to increase local defence manufacturing in the kingdom, without giving a value for the deal.
Ahmed Al-Khateeb, chairman of SAMI, said: “Today’s agreement marks a significant milestone for us, as we advance our efforts to build a strong, dynamic and sustainable military industries sector in Saudi Arabia.
“Defence electronics is a mission-critical element of the defence sector, and the acquisition of AEC firmly establishes SAMI’s presence on the global defence industry map. Furthering our aspirations in the sector, it will help us drive local content and stimulate economic growth.”
Established in 1988 under the ownership of a number of companies, including BAE Systems, AEC specializes in the design, development, manufacturing, maintenance and repair of several advanced industry and military electronic systems, devices and equipment.
Over the past few years, AEC said it has witnessed a steady growth in its sales year on year, with net sales in 2018 rising to SR2.07 billion.
Following the acquisition, AEC will form the core of establishing SAMI’s original equipment manufacturer business division, while SAMI’s total number of employees will significantly increase to reach 2,200.
Launched in May 2017, SAMI aims to be among the top 25 military industries companies in the world by 2030.For all the latest tech news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.