Defense and security company Saab AB announced a definitive agreement to acquire the U.S. company Sensis Corporation (Sensis), a leading provider of air traffic management (ATM) solutions and surveillance technologies, for approximately US$ 155 million (about SEK 1,008 million).

In addition, the parties have agreed on a potential earn out payment of maximum US$ 40 million (about SEK 260 million) by 2014.

Sensis is a leading provider of air traffic management (ATM) solutions and surveillance technologies serving the global civil aviation and defense industries.

The acquisition of Sensis strengthens Saab's existing offer within radar, sensors, ATM, and defense solutions and establishes a stronger market presence globally as well as in the U.S.

The acquisition provides a growth platform from which Saab can build on the combined installed base and skills in systems engineering, design and integration. Sensis customers and partners will benefit from Saab's product portfolio and global support operations.

Sensis will continue operations in the U.S. as a subsidiary within the Saab Group.
 
"This acquisition is in line with our ambition to focus on selected markets and grow our core business. Sensis has complementing product lines and is well-positioned on several key markets. By combining our product portfolios, we gain a stronger position and broaden our market offering," says Hakan Buskhe, President and CEO, Saab AB.

The transaction is pending approval from, among others, competition authorities in the U.S. and closing is expected in the third quarter of 2011.