Italy-based aerospace and defense contractor Leonardo has acquired a 25.1 percent stake in German sensor manufacturer Hensoldt for approximately $685 million in cash.
Leonardo said Monday it expects the transaction to help expand its presence in the European defense electronics market, particularly in the German defense sector, and strengthen the partnership between the two companies on the development of new capabilities meant to meet the requirements of domestic and international clients across land, naval and air domains.
Leonardo completed the transaction through Square Lux Holding II, a portfolio company managed by funds advised by Kohlberg Kravis & Roberts & Co.
Hensoldt produces sensors for security and defense applications with an expanding portfolio of products in robotics and data management, among other areas.
Hensoldt’s U.S. arm operates in Vienna, Virginia, through a special security agreement with the U.S. government. The subsidiary provides surveillance radars, avionics, laser rangefinders and other related systems to warfighters, security forces and first responders.
