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Company executives at the signing ceremony
Saudi Arabian Military Industries (SAMI), a wholly owned subsidiary of the Public Investment Fund (PIF), acquired Advanced Electronics Company (AEC) as part of the largest-ever military industries deal concluded in the Kingdom, state-run Saudi Press Agency reported.
The takeover, which is expected to be completed in Q1 2021 upon obtaining regulatory approvals, will make AEC a 100% Saudi-owned company, SAMI said in a statement.
“This deal strengthens SAMI’s presence in the strategically important defense industries market and supports its plans to transfer and localize the military industries. The acquisition will also enhance AEC’s opportunities to expand and compete in its field,” said Ahmed Al-Khateeb, Chairman of SAMI.
He also reiterated the support from the Minister of Defense for the transfer and localization of military industries as a key part of the Kingdom's Vision 2030.
AEC will bring transformative changes in the Kingdom’s defense sector by enhancing the industry’s competencies and advancing innovation, Al-Khateeb said.
With the state-of-the-art products, innovative technologies, decades of experience, and the collective efforts of both SAMI and AEC, the acquisition will shape the future of the domestic defense ecosystem and make long-lasting contributions to the national economy for the upcoming years, through skills development, employment generation, and exports, he added. AEC's has recorded steady growth in its sales in recent years, as net sales reached SAR 2.32 billion in 2019, up from SAR 2.07 billion in 2018 and SAR 1.92 billion in 2017.
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