ESG ELEKTRONIKSYSTEM- UND LOGISTIK acquired by HENSOLDT GROUP

HENSOLDT Group has signed a definitive agreement to acquire 100 % of ESG Elektroniksystem- und Logistik‑GmbH from an investment vehicle managed by Armira Beteiligungen GmbH & Co. KG. The transaction includes an earn‑out linked to ESG’s performance targets through the end of 2024 and is subject to customary regulatory approvals, with completion anticipated in the first half of 2024. The acquisition aligns ESG’s software engineering and systems‑integration expertise with HENSOLDT’s sensor portfolio, creating a combined offering that addresses digital battlefield solutions, integrated network capabilities and multi‑domain operations. By adding ESG’s proven track record in major defence programmes, HENSOLDT strengthens its position in European defence markets and expands its ability to deliver end‑to‑end solutions for customers in air, land and naval domains. Post‑closing, the combined entity expects to realise significant cost synergies through streamlined engineering processes and shared procurement, while cross‑selling opportunities are projected to enhance revenue streams across existing customer bases. The integration is planned to accelerate cash‑flow generation, improve free‑cash‑flow conversion and support higher return on invested capital, with financing provided via a capital increase and new debt facilities. The transaction is backed by the German federal shareholder and aims to reinforce the group’s long‑term growth trajectory while maintaining a strong domestic presence.