Chemring Group (LSE:CHEM) shares rose 1.6% after announcing the acquisition of Landguard Nexus Limited for up to £20 million, enhancing its electronic warfare (EW) capabilities. The deal involves an upfront payment of £14 million in cash, with a potential additional £6 million in earn-outs tied to performance milestones. The acquisition was completed via Chemring’s Roke subsidiary and is expected to strengthen its Cyber and Electromagnetic Activities (CEMA) product portfolio.
Landguard Nexus specializes in the design, manufacture, and support of software-defined radio (SDR) systems, including tracking technologies across satellite, cellular, and radio frequency communications. The current owner-managers are anticipated to stay on with Chemring post-acquisition.
Jefferies analysts described the acquisition as “strategically sensible,” noting that Landguard is part of Chemring’s existing EW supply chain and offers its own market growth opportunities.
This acquisition marks a key strategic step for Chemring to consolidate its supply base, expand technological capabilities, and reinforce its position in the electronic warfare sector.
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