Ascom transfers Defense unit to Ruag - this good Swiss solution ensures continuity
Ascom is transferring its Defense unit, the largest part of the former Security Communication Division, to Ruag. A good Swiss solution has thus been found to ensure continuity.
As of 1 March 2012, Ruag (Switzerland) Ltd. is taking over from Ascom (Switzerland) Ltd. all rights (including customer prepayments) and obligations pertaining to the Defense unit. All 84 employees and 10 apprentices will be taken over at their existing locations and they transfer to Ruag. The purchase price amounts to CHF 16 million. In addition, the purchaser has agreed to an earn-out payment of up to a higher single digit amount in CHF dependent on future success in the international business. The interest benefits related to transferred customer prepayments will be compensated with an additional amount of CHF 1 million.
Defense is the largest and most important business unit within the former Security Communication Division and is a recognized provider of reliable, secure communication solutions for tactical communications for national security institutions. In August 2011, the Board of Directors and Executive Board decided to seek new owners for the Security Communication operations due to strategic considerations. Ascom is pushing ahead with the remaining divestments, Civil Security, Infrastructure Operators and Ascom Austria.
"With the sale of its defense activities to Ruag, Ascom is pleased to have found a good solution that optimally serves the interests of customers (in particular the Swiss Army) and employees alike and also retains jobs in Switzerland. I am convinced that Ruag is the right partner to develop this business further, since the Defense unit is an ideal fit for Ruag, both strategically and in terms of the corporate culture," emphasizes Fritz Mumenthaler, CEO of Ascom
Information about RUAG:
RUAG is an international technology group for aerospace (space and aviation) and defence (security and defence technology) with a high level of competence in technology. The head office is in Bern (CH). RUAG has production facilities in Switzerland, Germany, Austria, Hungary, Sweden and the USA. RUAG has a workforce of 7,700 employees worldwide. Of these, 5% are trainees and 5,000 are employed in Switzerland.
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