It’s been up on the blocks for sale, since November 2007, in fact. Saab Space determined that this portion of Saab should be considered for sale, even though the company is well managed and profitable, but, as it was conveyed, the company hasn’t been able to reach sufficient synergies with other operations within Saab. Saab Space is a leading independent supplier of space equipment such as; computer systems, antennas and microwave electronics for satellites and adapters and separation systems for launchers. Saab Space is headquartered in Gothenburg, Sweden, with a division for mechanical systems located in Linköping, Sweden. Saab Space also has a fully owned subsidiary in Vienna, Austria, named Austrian Aerospace, focused on; digital signal processing, thermal hardware, mechanisms and mechanical ground support equipment. In 2007, more than 90 percent of Saab Space sales represented exports.
So what is Saab looking for in a buyer? They are seeking a professional buyer with the ambition to further develop the operations and to get a fair price. And, apparently they have done so, with RUAG. The price is acceptable and RUAG is a company that has the capability of further developing the operations of Saab Space and Austrian Aerospace, according to Saab CEO Åke Svensson. The RUAG technology group is an international aerospace and defense specialist with technological skills. The Group’s holding company is based in Berne, Switzerland and is 100 percent owned by the Swiss Confederation. RUAG has development and production sites in Switzerland, Germany and Sweden. In aviation and space RUAG is a leading supplier and integrator of systems and components for military and civilian aerospace applications.
The purchase price for the shares amounts to 335 MSEK. In addition to the fixed purchase price, Saab is entitled to an additional consideration related to the long-term positive performance of Saab Space. The transaction will generate a capital gain to Saab during 2008 of approximately 100 MSEK.
