The defense supplier Hensoldt says it is about to take over the military service provider ESG and is planning a capital increase. Hensoldt is “in exclusive negotiations for the acquisition of this manufacturer-independent systems integrator and technology and innovation partner for defense and public safety,” with a deal expected by early December, the company said.
In order to finance the purchase, Hensoldt is preparing a capital increase of up to ten percent, in which the federal government would participate in a quarter – in accordance with its shareholding in Hensoldt. At the current rate, this could bring in around 280 million euros. The takeover of ESG Elektroniksystem- und Logistik-GmbH, based in Munich, “would be an important step for Hensoldt to become a European provider of seamlessly integrated solutions,” the statement said.
The company has been owned by the financial investor Armira Partners since 2016, which is backed by rich families and companies. It was previously jointly owned by defense suppliers Airbus, Rohde & Schwarz, Thales and Northrop Grumman. ESG, based in Munich, says it employs 1,300 people and had sales of 285 million euros last year. The company, founded in 1967, works for the Bundeswehr, among others, and operates IT and electronic systems. ESG is already working with Hensoldt as part of the European fighter aircraft project FCAS.