LINKOPING, Sweden, Aug. 15 (UPI) -- Sweden's Saab AB has completed acquisition of Sensis Corp. of New York, creating a stronger foundation for growth in the North American market.
Saab said requisite reviews by the U.S. Trade Commission and the Committee on Foreign Investment in the United States have been completed and Sensis has been renamed to Saab Sensis Corp.
The company will continue operations in the United States as a subsidiary within the Saab Group.
"This acquisition is in line with our ambition to focus on selected markets and grow our core business," Saab President and Chief Executive Officer Hakan Buskhe said. "Saab Sensis' offering and their strong local presence in the U.S. within radar and sensors and a world-leading position in the Air Traffic Management market is an excellent complement to our operations.
"In addition, we also see good potential to expand the company's existing product portfolio, leveraging other Saab technology such as our C4I solutions, to further increase our reach into the U.S. defense market.
"As a result of the identified significant medium- to long-term operational synergies, as well as from a sales and marketing perspective, we believe the acquisition will be value enhancing."
Saab Sensis has a workforce of approximately 600 employees and services a global base of more than 60 customers in more than 35 countries.
The consideration amounted to approximately $150 million and an earn-out fee of a maximum $40 million by 2014, which is dependent on the achievement of various conditions.
The maximum total consideration amounts to about $190 million. Saab will use existing cash to fund the acquisition.