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Leonardo acquires stake in GEM
Leonardo announced on 21 April that it is expanding its sensor portfolio after taking a 30% stake in fellow Italian company GEM elettronica for an undisclosed price.
Under the agreement, Leonardo can acquire control of GEM via a purchase option that can be exercised in 2024.
Leonardo also signed a commercial and industrial agreement with GEM, under which the two companies will conduct joint R&D into naval technology and ‘applications for land platforms’.
GEM specialises in the production of compact and medium-sized 3D radars, EO sensors and inertial systems for the air, land and maritime sectors. As such, it ‘has the capacity to produce critical components for Leonardo products as well as specialised radar and electronics capabilities’, Leonardo noted.
It claimed that the deal would particularly strengthen its position in the market for short- and medium-range navigation and coastal surveillance radars, adding: ‘Leonardo will be able to expand and diversify its offer and improve the engineering, production and marketing of products in different bands to those in Leonardo’s existing portfolio.’
GEM products include the MM/SPN-749. This I-band surface search and navigation radar is installed on the Italian Navy’s STOVL aircraft carrier Giuseppe Garibaldi, Shephard Defence Insight notes.
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