Thales enters into a definitive agreement to take full ownership of Advanced Acoustic Concepts (AAC)
April 26, 2022
- Thales Defense & Security, Inc. (TDSI) and Leonardo DRS have entered into an agreement to transfer full ownership of the Advanced Acoustic Concepts (AAC) joint venture to TDSI.
- AAC serves the US Navy as a contractor to US industry, providing innovative systems and solutions in the field of Navy undersea warfare.
- AAC’s technical skills, industrial footprint and proven performance will enable Thales to strengthen its footprint in the US defense market by strengthening US-based TDSI teams and capabilities.
TDSI, a subsidiary of Thales, enters into a definitive agreement to acquire Leonardo DRS’ stake in their joint venture, AAC.
As one of America’s leading suppliers of mission-critical systems, TDSI serves the defense, federal and commercial markets with innovative solutions for the land, airborne and avionics, naval/maritime and security tactical domains. As a subsidiary of Thales, TDSI operates under a proxy agreement approved by the US Department of Defense, to mitigate foreign ownership, control or influence (FOCI) issues.
In addition to providing a wide range of organic products and solutions, TDSI acts as a gateway for technology, leveraging proven Thales solutions – such as combat management systems; airborne, naval and ground radars; helmet-mounted displays; missile rockets; and battlefield sensors – to meet US requirements.
AAC is a leading US technical player in advanced sonar, training and knowledge management systems. The company provides modernization systems for the US Navy through an open systems and open enterprise technology insertion model. With more than 200 employees, AAC generated a turnover of 80 million dollars (~70 million euros) in 2021.
AAC’s technical skills, industrial footprint and proven performance will enable Thales to strengthen its footprint in the US defense market by strengthening US-based TDSI teams and capabilities.
“The partnership between Leonardo DRS and Thales in AAC has proven to be successful, and the two companies can be proud of the joint technological development of underwater warfare systems for the U.S. and Allied navies,” said Bill Lynn, CEO of Leonardo DRS. “As Leonardo DRS shifts its technology focus to a different range of DoD priorities, we know AAC will be in safe hands as Thales continues to focus more broadly on advanced underwater warfare systems and technologies. associated.”
“This acquisition underscores Thales’ continued commitment to serving the US DOD through its trusted US entity, TDSI. Through AAC, TDSI will now maintain a significant industrial and engineering footprint in the United States to deliver our subsea solutions and leverage Thales support. to the United States Navy,” said Alan Pellegrini, CEO of Thales North America.
Upon closing, AAC’s innovative systems and solutions will complement Thales’s subsea systems capabilities and globally recognized naval technology portfolio.
Completion of the transaction is subject to regulatory approvals and customary closing conditions. Financial terms are not disclosed. The acquisition is expected to be finalized in the second half of 2022.