November 13, 2024 | International, Land
August 14, 2020 | International, Aerospace
Hungary plunks down $1 billion for new air defenses
COLOGNE, Germany – The Hungarian and U.S. governments have announced a $1 billion deal to equip the European country with new air-defense weaponry.
The sale includes the Raytheon-made Advanced Medium-Range Air-to-Air Missile-Extended Range missile, of which Hungary requested some 60 copies in May through the U.S. Foreign Military Sales program. According to the Defense Security Cooperation Agency, that portion of the deal is worth $230 million.
Another transaction type, called a Direct Commercial Sale, accounts for the rest of the money, according to a statement posted on the website of the U.S. Embassy in Budapest. Such sales are negotiated privately between customer countries and American defense contractors, meaning the U.S. government has little involvement besides approving an export license.
Exactly what the DCS portion of the deal entails is unclear, though the embassy statement and Hungarian media note that all the equipment would go toward replacing the country's Soviet-era gear with the NASAMS short- and medium-range air-defense system made by Norway's Kongsberg. Raytheon's AMRAAM-ER missiles are the interceptors in that configuration.
U.S. Ambassador David Cornstein, a New York businessman and admirer of Hungarian Prime Minister Victor Orban's policies, and Hungarian Defense Minister Tibor Benkő lauded the weapons deal Wednesday.
“We commend the Hungarian government's strong commitment to continue modernizing Hungary's military through the acquisition of the world's most advanced mid-range air defense system, which will enhance Hungary's ability to provide collective and self-defense,” the statement reads.
EU member Hungary, with its far-right government, is under pressure from other members of the bloc for what they say is a steady slide toward anti-democratic rule.
The country has been on a military spending spree lately, with Germany's Krauss-Maffei Wegmann in line to supply dozens of Leopard-2 tanks.
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November 10, 2021 | International, Aerospace
Abu Dhabi's dilemma: Will the UAE ever operate the F-35?
Talks over tech agreements. Debates about system integration. Concerns over cooperation with China and Russia. These are some of the pressure points involved in negotiations between the UAE and the U.S. over an F-35 deal.
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February 5, 2020 | International, C4ISR
L3Harris looks to shed as much as 10 percent of company
By: Jill Aitoro WASHINGTON — L3Harris Technologies could divest up to 10 percent of the company, according to CEO Bill Brown, as its recent decision to sell its airport security business for $1 billion is seen as the first of more transactions expected to refine the firm's portfolio. L3Harris signed a definitive agreement to sell the business unit to Leidos, according to an announcement Tuesday. The transaction is expected to close in mid-2020, barring any issues tied to regulatory approvals. Proceeds from the divestiture are expected to be used to repurchase shares and offset dilution. The deal is part of a larger strategy to reshape the portfolio, focusing on what Brown described on a call with analysts as “high-margin, high-growth, technology-differentiated businesses where we can win and generate attractive returns.” “Although this is the first and largest transaction we're contemplating, our portfolio-shaping process is ongoing and may ultimately result in 8-10 percent of total company revenue being divested over time,” he said. The company's 2019 revenue of $18.1 billion could translate to as much as $1.8 billion in divestitures. Brown told Defense News in June 2019 — one month before the merger of Harris and L3 Technologies was completed — about plans to divest a “pretty significant” piece of the business in the first six months as a single company. “Anytime you put two companies with two portfolios together and you rethink what strategy you want to accomplish, there's going to be some pieces of the portfolio at the back end of the bus,” Brown said at the time. “We have to look at where we want to put our management time, capital, and [research and development] investment. We can't put it on pieces that might not be as strategic." Brown told analysts that the deal would not impact the company's $3 billion free cash flow target in 2022. That in theory would set up L3Harris for a sizable acquisition down the road, should the company choose to go in that direction. A company spokesman could not comment on the specific defense-nondefense split post divestiture, but L3Harris would presumably see a larger slice of the business focusing on defense opportunities. In the 2019 Defense News Top 100 list of the largest defense companies, Harris and L3 reported 72 percent and 81 percent of revenue as defense-focused, respectively. L3Harris reported $18.1 billion in fiscal 2019 revenue. Once the deal with Leidos closes, the airport security businesses' $500 million in annual revenue would transition off the books. That said, L3Harris is forecasting 5-7 percent revenue growth in 2020 — so it won't be a straight reduction. https://www.defensenews.com/industry/2020/02/04/l3harris-looks-to-shed-as-much-as-10-percent-of-company