Defence contractor BAE systems to buy Norkom Group

BAE Systems' hybrid tank

BAE Systems’ hybrid tank

Norkom Group – the financial crime and fraud prevention company, will be acquired by defence contractor BAE Systems for €217 million (£180 million), the company said in a statement today.

BAE Systems will offer €2.1 for each share of Norkom, the statement said.

Ian King – Chief Executive of BAE Systems said: “The combination will result in a significantly enhanced offering for customers and present an opportunity for accelerated growth for BAE Systems in the fast growing cyber and intelligence services sector”, while commenting on the synergies between the two companies.

In November last year, Norkom had disclosed that it is in talks with a number of suitors for a possible take over proposal. BAE’s offer is a 36 percent premium over Norkom’s Thursday’s closing price.

Norkom said it will recommend the offer to its shareholders as the business stands to gain from the “scale, reputation and resources” of BAE Systems.

Stating that Norkom’s acquisition will diversify BAE’s product portfolio, Mr. King said: “Norkom’s technology platform together with BAE Systems’ complementary technology and rich knowledge of the security space will create a fantastic opportunity to bring additional offerings to the market”.

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