LONDON – Saudi Arabian Military Industries (SAMI) has signed a term sheet agreement to acquire 100% ownership in Advanced Electronics Co.

SAMI's investment in AEC for an undisclosed sum comes as part of SAMI's ongoing efforts aimed at increasing local defense manufacturing, in line with the directives of the Saudi Vision 2030.

"The foundation for the institution and growth of SAMI was laid three years ago with the announcement of the Saudi Vision 2030,” said H.E. Ahmed Al-Khateeb, chairman of SAMI. “SAMI's journey began in 2017, and since then we have forged ahead with the backing of our country's leadership, steadfast efforts of our team and support of our partners. Today's agreement marks a significant milestone for us, as we advance our efforts to build a strong, dynamic and sustainable military industries sector in Saudi Arabia.

"Defense electronics is a mission-critical element of the defense sector, and the acquisition of AEC firmly establishes SAMI's presence on the global defense industry map. Furthering our aspirations in the sector, it will help us drive local content and stimulate economic growth."

Following the acquisition, AEC will form the core of establishing SAMI's OEM-agnostic defense electronics and indigenous defense technology solutions business division. In addition, SAMI's total number of employees will increase to reach 2,200.

AEC had 2018 net sales of $559.1 million, up 7.5% year-over-year.

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