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.
In June 2006, DRS Tactical Systems unit in Melbourne, FL announced a multi-year $396 million indefinite-delivery/ indefinite-quantity contract to provide rugged Applique Computer Systems and peripheral equipment for the U.S. Army’s Force XXI Battle Command, Brigade and Below (FBCB2 – and see video) program.
FBCB2 is more commonly known to the public as “Blue Force Tracker,” though that is only part of the system. DID has covered Blue Force Tracker and its profound implications for land warfare before.
The article argues that the planes were well adapted to European needs, but had critical gaps when placed on the global export market. While these shortcomings and others are all being addressed in time, many of these improvements are arriving just as the aircraft’s market window is narrowing. Were the Europeans really wrong to be right? The article is completely in French, but we’re putting the link up for DID’s international and multi-lingual readers because it was interesting.
The US Army is preparing its FY 2008 – 2013 program objective memorandum (POM), due Aug. 15 to the Office of the Secretary of Defense. Inside Defense reports that the Army is considering a number of possibilities, as the April 2006 fiscal guidance handed down by Deputy Defense Secretary Gordon England directed the Army to eliminate $25 billion across the POM including a total of $17 billion from its FY-12 and FY-13 budgets. Cutting the Army by a division, canceling the Future Combat Systems program, and other options are on the table. Inside Defense reports.
MW Builders of Texas Inc. of Temple, TX, was awarded on May 31, 2006, a $19.9 million firm-fixed-price contract for construction of a vehicle maintenance facility at Fort Hood, TX. Fort Hood is famous as the largest active duty armored post in the United States, and is the only post in the USA capable of supporting two full Army armored divisions.
Work is expected to be completed by June 21, 2008. There were 350 bids solicited on Feb. 10, 2006, and 3 bids were received by The Army Engineer District in Fort Worth, TX (W9126G-06-C-0019).
