Afro-Swedish defence company Saab Grintek is buying Aerospace Monitoring and Systems (AMS) in a R30-million deal.

Saab-Grintek said the move was part of its strategy to give the South African defence industry global exposure within its strategic niches, and continue Saab's expansion into the South African and African markets.

"AMS product portfolio and markets fits very well into our avionics business, especially in the areas of safety, monitoring and digital recording systems, where together we will be a significant global player", said Saab Avitronics President Björn Erman.

On completion of the deal, AMS will form part of Saab Avitronics, a business unit focusing on avionics and electronic warfare systems, which already has operations in Sweden and South Africa.

AMS will benefit from Saab Grintek's expertise and a well-developed global distribution footprint in an active and increasingly competitive avitronics market.

"We are excited about the excellent strategic fit between our products, markets and cultures and look forward to expanding our business under the Saab brand", said Christo Weder, AMS chief executive.

AMS is based in Midrand and employs 75 people. At the moment, 95 percent of its turnover is generated by export. It designs, develops, manufactures and supports specialised aircraft monitoring systems.

Saab Grintek is a leading high technology group and a partnership between Kunene Bros Holdings (29.7 percent) and Saab AB (70.3 percent).

The group specialises in telecommunications and selected niche opportunities within industrial and defence electronics.

Saab Grintek also anticipates the investment will translate into job creation in the long-term.

The acquisition is subject to approval by the regulatory authorities and is likely to be effective at the beginning of April 2006.

Like the existing Saab Avitronics electronic warfare operations in South Africa, AMS will from a legal point of view, be part of Saab Grintek Defence, which is jointly owned by Saab Grintek and Saab AB.

Sapa

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