26 April 2022 – Thales subsidiary TDSI enters into a definitive agreement to acquire Leonardo DRS ownership in their joint venture, AAC.
As one of the main US providers of mission-critical systems, TDSI serves the defense, federal, and commercial markets with innovative solutions for the ground tactical, airborne and avionics, naval/maritime, and security domains. As a subsidiary of Thales, TDSI operates in accordance with a Proxy Agreement approved by the US Department of Defense, to mitigate concerns associated with Foreign Ownership, Control, or Influence (FOCI).
In addition to providing a broad range of organic products and solutions, TDSI serves as a gateway for technology, leveraging proven Thales solutions – such as combat management systems; airborne, ship and ground radars; helmet mounted displays; missile fuzes; and battlefield sensors – to address US requirements.
AAC is one of the main US technical players in the fields of advanced sonar, training and knowledge management systems. The company delivers modernization systems for the US Navy through an open business, open systems technology insertion model. With more than 200 employees, AAC generated $80 million (~€70 Million) sales in 2021.
AAC’s technical skills, industrial footprint and proven record of performance will enable Thales to strengthen its footprint in the US defense market by reinforcing TDSI US-based teams and capabilities.
“The partnership between Leonardo DRS and Thales in AAC proved successful, and both companies should be proud of the joint technology development in undersea warfare systems for the US and allied navies,” said Bill Lynn, CEO of Leonardo DRS. “As Leonardo DRS moves its technology focus to a different range of DoD priorities, we know AAC will be in good hands as Thales continues its broader focus on advanced undersea warfare systems and related technologies.”
“This acquisition underscores the ongoing commitment Thales has to serving the US DOD through its trusted US entity, TDSI. Through AAC, TDSI will now maintain a significant engineering and industrial footprint in the US to provide our undersea solutions, and to optimize Thales’ support to the US Navy”, said Alan Pellegrini, CEO of Thales North America.
Upon closing, AAC’s innovative systems and solutions will complement Thales underwater systems capabilities and world recognized Naval technology portfolio.
The completion of the transaction is subject to regulatory clearances and customary closing conditions. Financial terms are not being disclosed. The acquisition is expected to close in H2 2022.