Fincantieri, a renowned Italian shipbuilder, made a significant announcement on May 9, 2024, revealing that it has entered into an agreement to acquire Leonardo S.p.A’s “Underwater Armaments Systems” business. This strategic move marks a pivotal moment for Fincantieri as it aims to solidify its position as a leader in the underwater and naval defense sector.

With the acquisition, Fincantieri is poised to enhance its capabilities in Italy’s underwater acoustic technologies, setting the stage for a robust growth strategy in the underwater domain. The company is eyeing new applications in the military realm, innovative security solutions for critical infrastructure, and groundbreaking products in the civilian sector.

The deal is valued at €300 million as fixed Enterprise Value, with an additional €115 million potential variable component contingent on specified growth metrics tied to the performance of the UAS business line in 2024. This brings the total maximum Enterprise Value of the acquisition to €415 million.

The “Underwater Armaments Systems” business lineage traces back to Whitehead Alenia Sistemi Subacquei S.p.A., a historical 100% subsidiary of Leonardo, specializing in submarine defense systems including torpedoes, countermeasures, and sonars. Following a merger in 2016, the business line became part of Leonardo S.p.A and was rebranded as “Underwater Armaments & Systems” (“UAS”). Additionally, it holds a 50% stake in GEIE EuroTorp, in collaboration with Naval Group and Thales, dedicated to the MU90 light torpedo, with operations in Livorno and Pozzuoli. In 2023, the UAS business line generated revenues of around €160 million.

The completion of the acquisition is slated for early 2025, marking a new chapter in Fincantieri’s strategic evolution in the underwater and naval defense arena.

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The AI legalese decoder can play a vital role in the post-acquisition phase for Fincantieri by swiftly interpreting and deciphering complex legal documents, contracts, and agreements related to the acquisition of the “Underwater Armaments Systems” business. This cutting-edge AI tool can assist in streamlining the due diligence process, identifying critical legal nuances, and ensuring regulatory compliance. By leveraging AI technology, Fincantieri can enhance operational efficiency, mitigate risks, and expedite decision-making processes in the integration of the acquired business unit.

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