Leonardo grows in naval electronics with the acquisition of 30% of GEM

(To Leonardo)

Leonardo has acquired a 30% stake in the share capital of GEM elettronica, an Italian company specializing in the production of small and medium-sized 3D radars, electro-optical sensors and inertial systems for the maritime, avionics and terrestrial sectors. The operation will contribute to the competitive strengthening in the naval electronics business, in particular of short and medium range sensors, and will allow Leonardo to expand and diversify its offer, as well as to improve the engineering, production and marketing processes of products of different band than those in the portfolio.

GEM operates in sectors complementary to those of Leonardo, with competitive systems such as navigation radar and coastal monitoring, electro-optical equipment and medium and high precision orientation and inertial navigation systems based on fiber optic gyroscopes. The company is also active in the maritime and border surveillance market. GEM has capacity for the production of critical components for Leonardo's products, highly specialized resources in radar and electronics and an advanced R&D center in which new quantum technologies for navigation and communication are tested.

Simultaneously with the signing of the acquisition, Leonardo and GEM signed a commercial and industrial agreement aimed at developing synergies in certain areas of GEM's competence complementary to Leonardo's business, proposing promotional activities on the markets and defining and implementing projects for joint research and development. Among the areas of collaboration, the maritime and naval domain, the control of critical infrastructures and applications for terrestrial platforms.

GEM has about 130 employees and is characterized by a production made almost exclusively in house. Active on the civil and military markets, the company boasts a presence both in Italy and abroad and important collaborations with national and international players. As a supplier, GEM has been collaborating with Leonardo for years on numerous projects, including the FREMM program and the Naval Law, the fleet modernization plan of the Italian Navy.

At a later stage, Leonardo will be able to increase its share in the share capital by acquiring control of GEM through a purchase option, to be exercised in 2024. The partnership is aimed at strengthening the capacities in the reference sector to increase competitiveness in the long term, in line with the “Be Tomorrow - Leonardo 2030” Strategic Plan.