Chemring is pleased to announce the conditional acquisition of Landguard Nexus Limited (“Landguard”) and its wholly owned subsidiaries Landguard Systems Inc and Landguard Systems Limited (collectively the “Landguard Group”) (the “Acquisition”). The Acquisition creates further opportunities for Chemring to enhance the growth of its Roke business.
Acquisition overview
Landguard, based in Fareham, Hampshire, designs, manufactures, and supports, software defined radio (“SDR”) systems and associated security products that enable defence, government, and law enforcement customers to protect crucial operational assets. These specialist systems include high performance tracking products operating across satellite communications, cellular networks and other radio frequency technologies, as well as SDR transceivers which provide flexible and reprogrammable radio capabilities incorporating the latest interoperability standards.
Landguard’s operational agility, and unique technologies, enables it to satisfy customer requirements across the complete product lifecycle of design, manufacturing, and after-sales operational support. The acquisition brings thirty specialist engineers to Roke in addition to a suite of market leading products, unique intellectual property and a range of complementary customer relationships. The current owner-managers of Landguard are expected to remain with Chemring following completion of the Acquisition.
The consideration of up to £20m will be satisfied by a £14m cash payment on completion, funded from Chemring’s existing bank facilities, and cash earnouts totalling up to £6m subject to certain performance targets. In the year ended 31 January 2025, Landguard’s turnover was c.£7m. The acquisition is expected to be marginally earnings enhancing in the year ending 31 October 2026.
Completion of the transaction is subject to approval under the UK National Investment and Security Act.
Opportunity and rationale
The Acquisition creates further opportunities for Chemring to enhance and accelerate growth of its Roke business whilst driving strong operational synergies. The combination of Roke’s Cyber and Electromagnetic Activities (“CEMA”) pedigree and Landguard’s modular, high-performance technologies creates a unique UK Sovereign portfolio of Defence, National Security and Law Enforcement products and capabilities that can be immediately shared with Roke’s existing Defence and National Security customers and also used to enhance its significant (>£300 million) international sales pipeline.
Michael Ord, Chief Executive of Chemring, commented:
“The acquisition of Landguard further enhances Roke’s significant operational capabilities and is further evidence of Chemring delivering its strategy of delivering growth through a combination of organic investment and bolt-on acquisitions in high-priority defence and national security markets.”
