To strengthen defense electronics in advanced military industries, the Saudi Military Industries Company (SAMI) has announced the signing of the terms and conditions sheet for the acquisition of the entire shares of Advanced Electronics Company (AEC) during a joint official event between the Kingdom of Saudi Arabia and the United Kingdom held in London in the presence of the chairman of SAMI, Ahmad Al-Khateeb, and the chairman of BAE Systems plc, Roger Carr.
AEC,based in Riyadh, is involved in engineering, development, manufacturing, repairand technical support sectors through defense, IT, ICT, energy, cybersecurity,and advanced technology at the local, regional, and international levels.SAMI's investment in the AEC comes as a part of SAMI's ongoingefforts to increase and strengthen local Saudi military industries in line withthe vision of the Kingdom 2030.
"SaudiMilitary Industries were established three years ago after the announcement ofthe vision of the Kingdom 2030. Since then, we have made significant progressthanks to the support of our good governance, the sincere efforts of ourcadres, and the support of our success partners," Ahmad Al-Khateeb said.
Al-Khateebalso added: "The agreement signed today marks a milestone in our careerand will enable us to intensify our efforts to build a strong, dynamic, andsustainable military industry in Saudi Arabia".
"Defenseelectronics is an important component of the defense industry. So, theacquisition of the AEC puts Saudi Military Industries on the map of theglobal defense industry, supports our ambitions in this sector, and contributesto raising local content and stimulating economic growth in general",Al-Khateeb stated.
AEC, founded in 1988 under the EOP, was owned by a number ofcompanies, including BAE Systems. For nearly three decades, it hasplayed a leading role in the fields of modern electronics, manufacturing, systemsintegration, repair and maintenance services, making it one of the region'sleading innovators.
AEC specializes in the design, development, manufacturing, maintenanceand repair of many advanced industrial and military electronic systems andequipment such as: electricity and water smart meter systems, security systemsfor vital infrastructure, industrial control systems, Typhoon's cockpitsystems, jamming systems, targeting F-15 systems, the electronic unitsof F-16, ground equipment, training systems, simulators for Hawk 165 aircraft,Tornado cockpit systems and many more.
AEC plays a key role in the localization of Saudi militarymanufacturing, the deployment of smart technologies, and the acceleration ofindustrial and commercial growth, while maintaining a localization rate of morethan 80%, while the company implemented more than 1000 projects with 100%completion, especially it has developed an Aligned Integrated Methodology toimplement and manage projects, programs, and portfolios.
Inthe past few years, AEC has witnessed steady growth in its sales year onyear, with net sales in 2018 rising to SAR2.07bn, compared to SAR1.925bn in2017 and SAR1.65bn in 2016.
Aftercompletion of the acquisition, AEC will be the main structure of SAMI'sdefense electronics unit. The equipment for this unit will be compatible acrossall its sectors with the OEMs' products. SAMI's total number ofemployees will increase significantly to reach 2200 as a result of theacquisition.
Inaddition to facilitating technology transfer, enhancing local production, anddeepening MRO operations, the acquisition will enable SAMI to developits own mature products to help achieve its 2030 strategic objectives.
Sinceits launch in mid-2017, SAMI has been leading Saudi Arabia's efforts todevelop its defense capabilities and enhance its self-sufficiency through itsgrowing portfolio of military products and services in its four key areas—airsystems, ground systems, weapons and missiles.