Saab Acquires Ericsson Microwave Systems
Saab AB is acquiring Ericsson Microwave Systems (EMW) which has approximately 1,250 employees in Gothenburg and focuses on radar and sensor operations. EMW’s operations within National Security and Personal Safety as well as Power Systems (300 employees), will remain part of Ericsson. The purchase sum is SEK 3.8 billion ($520 million at current conversion). EMW currently delivers the radar for the JAS-39 Gripen fighter, as well as the Erieye radar mounted on Saab 2000 and EMB-145 aircraft as a mini-AWACS.
EMW will change its name to Saab Microwave Systems and become part of the Systems and Products business segment. The defense operation within EMW turns over about SEK 2 billion ($273 million) with good profitability, has total assets of some SEK 3 billion ($410 million), and at the start of 2006 had an order backlog of approximately SEK 3.5 billion ($478 million). Exports make up approximately 65% of turnover.
The purchase also includes the Ericsson 40% share in Saab Ericsson Space. That firm will now be totally owned by Saab, which is looking to consolidate its position as Europe’s largest subcontractor for equipments to commercial satellites. Saab Group release | Ericsson release.