Fincantieri Buys Underwater Technology Companies For

Source Domain: www.marinelink.com

Fincantieri, the Italian shipbuilder, has agreed to purchase four Italian subsea technologies companies for an initial amount of approximately EUR600 million ($685.1 millions).

Fincantieri’s shares rose up to 14% after the announcement that it would buy a majority stake in Next Geosolutions. WSense. Graal Tech. and Defcomm.

Fincantieri has expanded its presence in the areas of marine survey, geoscience, marine construction, drone technology, both underwater and on the surface, as well as wireless communication systems, allowing for wireless connections of smart underwater equipment.

CEO Pierroberto Fogiero stated that the fastest growing opportunities in this sector are in defence and dual-use applications for both military and civilian customers. Commercial activities such as surveys, construction assistance and deep-sea mines were also included.

Fincantieri’s underwater technology operations will generate EUR1.1 billion of revenue and EUR220 millions of core profit in this year. This is ahead of schedule for its 2030 targets.

Earnings per share are projected to increase by?about 30% in 2028 and by 20% in 2030.

The acquisitions at group level will result in a pro-forma increase of 13% in core profit in 2026 and a 40% increase in net profit.

The transactions are being funded by?the proceeds from a EUR500m capital increase completed in Febrary and other resources. This has no impact on the guidance for net debt and core earnings 2026.

Fincantieri will receive about 57% of NextGeo, which is listed in Milan. This opens the door for Fincantieri to make a mandatory bid for the remaining shares.

Giuseppe Dado, CFO of NextGeo, told analysts that the maximum amount for the four acquisitions could be “a little over” EUR1 billion, including NextGeo’s offer. He added that the deals wouldn’t affect the group’s debt reduction, which will accelerate after they are consolidated.

(source: Reuters)

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