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Africa|Business|Defence|Installation|Lighting|Manufacturing|Power|SECURITY|Sensor|Services|Systems|Maintenance|Products|Solutions
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South Africa’s defence electronics sector sees significant acquisition deal

1st July 2020

By: Rebecca Campbell

Creamer Media Senior Deputy Editor

     

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Local defence company Hensoldt South Africa (Hensoldt SA) has agreed to buy the Defence and Security and Air Traffic Management (ATM) business units of another South African company, Tellumat. The agreement was signed in a virtual ceremony on June 26. It will come into force once all the regulatory approvals have been given.

“With this transaction we are combining the activities of two leading defence electronics providers and strengthening our position as a leading defence, security and electronics brand in South Africa,” affirmed Hensoldt SA MD Rynier van der Watt. “The complementary product portfolios of Hensoldt South African and Tellumat create a complete sensor solutions offering, that is in line with that of the Hensoldt Group. We will create new products and services that will build upon the significant expertise that is being acquired.”

Tellumat’s defence and security business comprises unmanned aerial vehicle systems (including a complete suite of avionics and data links), tactical communications systems (including radio and video), and identification friend or foe systems. Its ATM business includes the provision, installation and maintenance of runway lighting systems, navigational systems, voice communication systems and radar systems, at both civil and military airfields. 

Tellumat had a turnover of more than R500-million, and its defence and security and ATM businesses were each responsible for about 20% of this (or 40% combined). It employed more than 100 people. Its remaining businesses are integrated solutions and its joint venture electronics manufacturer, Leratadima Tellumat Manufacturing.

Hensoldt SA is the local subsidiary of major Germany-based defence and electronics group Hensoldt. It employs more than 600 people and has an annual turnover of R1.5-billion. 

“This acquisition is a further step in the Hensoldt Group’s commitment to continue to invest in South Africa and to grow Hensoldt South Africa as one of its home countries,” highlighted Hensoldt group executive for South Africa Celia Pelaz. “We are leveraging the power of the Hensoldt brand to expand its global footprint and open new market opportunities for the South African business.”

 

Edited by Creamer Media Reporter

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