Asseco strengthens its position in the defense and security sector
Formula Systems, an Israeli company of Asseco Group, and Israel Aerospace Industries (IAI) have entered into an agreement for the acquisition of TSG. TSG is a specialized provider of command and control, intelligence, and cybersecurity systems.
The total purchase price of TSG shares will be USD 50 million, with each of the parties acquiring a 50% stake in the company for USD 25 million. The investment will enable Asseco Group to expand the scope of its activities in the sector of defense and security. TSG is a subsidiary and the military arm of Ness Technologies, a global vendor of IT solutions. It is a leading provider of command and control systems to Israel’s defense organization, including the Israeli Defense Forces and the Israeli Police. Acting together with IAI, Israel’s largest manufacturer of military and business jets as well as unmanned flying machines, Formula Systems will acquire half of TSG shares. By making this investment and entering into cooperation with a new partner, the company will be able to expand its operations into further markets.
“The acquisition of TSG, a leader in its field, adds a significant capability to Formula’s portfolio, extending our reach to the defense and cybersecurity industries. This gives us a solid base on which we can build. We can think of no better partner in this acquisition than Israel Aerospace Industries and look forward to our close collaboration,” said Guy Bernstein, CEO of Formula Systems.
Asseco Group continues to intensify its activities in the defense industry. The company has a proven track record of projects implemented, among others, for the Polish Ministry of National Defense, NATO, and the Frontex agency. Leveraging on its experience gained through the execution of projects for international institutions, the company takes part in tenders for the modernization of the Polish Military Forces, including the “Willow” command system, image analysis system, unmanned systems, as well as IT security systems. In 2015, Asseco Poland has become a member of the “BMS Consortium” that is going to offer a technologically advanced Battlefield Management System (BMS).