Leonardo to become leading shareholder in German radar giant Hensoldt

The Italian company will purchase a quarter of the German company's shares for about €606 million. The two companies already collaborate on the Eurofighter Typhoon fighter program, among others

Photo: Eurofighter Typhoon

Italy's Leonardo announced that it has entered into a definitive agreement to purchase a 25.1% stake in Germany's Hensoldt AG for a cash consideration of approximately €606 million, or €23 per share. Hensoldt is a leading European player in the field of sensor solutions for defense and security applications, with an expanding portfolio in cyber security, data management and robotics. Because of the stake purchase, Leonardo will become the largest shareholder of Hensoldt alongside Kreditanstalt für Wiederaufbau (KfW) which is 80% owned by the Federal Republic of Germany.

In its statement, Leonardo said that with the investment in Hensoldt, Leonardo will establish a strategic long-term presence in the fast-growing German defense market. The two companies already have a well-established relationship, including collaboration on the Eurofighter Typhoon program as independent operators within the consortium model. The envisioned closer cooperation will be based on a strong complementarity in terms of geography, product portfolio, end markets, customers and suppliers in the air, land and naval domains and will allow them to deepen access to their respective markets, offer complete solutions to their customers and share best practices for the development of future technologies, the statement said.

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