Paramount Group acquires ATE
Paramount Group has agreed to acquire ATE South Africa as part of a rescue package, it has been announced.
ATE will now be incorporated into the Paramount Group, trading as Paramount Advanced Technologies, ensuring that vital aerospace expertise and world-class competency remains in South Africa, Paramount said in a 6 June statement.
The company said ATE has been through a ‘tumultuous time’ over the past few years and was placed under business rescue just under two years ago.
‘Paramount Group’s acquisition will ensure the continuation of this strategic business, and in so doing, add significant new and sophisticated aeronautical capabilities into its existing product offering and expand the group’s ability to deliver to its many government customers around the world,’ the company statement said.
Ivor Ichikowitz, Executive Chairman, Paramount Group, said the alternative to Paramount rescuing ATE would have been for the company to go into liquidation or for a foreign company to acquire the business.
‘This would have meant the loss of a highly specialised strategic capability to South Africa and the continent forever. The Paramount Group is firmly committed to growing Africa’s high-tech competence and this transaction further provides us the opportunity to do so,’ Ichikowitz said.
‘With South Africa becoming a fully-fledged member of BRICS it is imperative that we enter a new phase of industrialisation. The development of home-grown technology, skills and manufacturing capabilities are crucial if we are to capitalise on both the world’s appetite to do business in our region and the huge potential for intra-African and intra-BRICS trade.’
You may also like
More from Defence Notes
-
![US lawmakers warn that “more military spending is absolutely necessary” to ensure Pentagon’s readiness]()
US lawmakers warn that “more military spending is absolutely necessary” to ensure Pentagon’s readiness
The US Congress has raised concerns about how inflation rates and cuts in main acquisition programmes could affect the US military.
-
![US FY2024 funding package passes as China closes military capability gap]()
US FY2024 funding package passes as China closes military capability gap
The Pentagon has been operating under temporary funding since October 2023, which has impacted its main acquisition and development programmes, increasing the capability gap between the US and China.
-
![NATO outlines future challenges as Ukrainian funding from US stalls]()
NATO outlines future challenges as Ukrainian funding from US stalls
In 2023, defence spending increased by an unprecedented 11% across European NATO countries and Canada. Since 2014, the group has spent an additional US$600 billion on defence.
-
![US Pentagon to reduce investments in main acquisition programmes over FY2025]()
US Pentagon to reduce investments in main acquisition programmes over FY2025
The DoD requested nearly US$850 billion to fund operations over the next fiscal year. Despite the amount being 1% higher than the FY2024 budget request, it has not covered the 3% inflation rate, which could impact the DoD’s main programmes in the medium and long term.
-
![Haiti crisis forces Caribbean militaries to prepare for intervention]()
Haiti crisis forces Caribbean militaries to prepare for intervention
As gangs gain control of Port-au-Prince, Haiti’s Caribbean neighbours have been preparing to intervene in the failed state, with the US and other partners waiting in the wings with equipment and financial support.
