RUAG is acquiring Ascom's business unit Defense, which specializes in communications solutions for Army Units and Security Forces.

The move sees RUAG developing its competences in the area of network-enabled operations. All 84 employees and 10 trainees are also making the move across to RUAG.

The contract was signed, and the closure of the accounts took place, on 29 February 2012.

Until now RUAG has specialized in the maintenance and integration of command, communications and radar systems in the area of network-enabled operations. The transaction now finds the company able to offer development and production. The most significant customer at present is the Swiss Armed Forces through the Federal Department of Defense, Civil Protection and Sport.

The asset deal is worth CHF 16 million. In addition,  RUAG will be making an earn-out payment in the upper single-digit million range, which is  dependent on achieving success in the international side of the business.

“By merging activities, RUAG is able to offer communications solutions in the area of network enabled operations from a single source, ranging from development and production all the way through to maintenance. This means that RUAG as the technology partner of the Swiss  Armed Forces is well placed to offer improved and more comprehensive services in a key  area, both for the existing infrastructure and for future projects," commented Urs Breitmeier, CEO of RUAG's Defense Division.

Ascom is an international solution provider with comprehensive technological know-how in Mission Critical Communication. The company focuses on the areas of Wireless Solutions (high-value,  customer-specific on-site communications solutions) and Network Testing (a  global market leader in  testing and optimization solutions for mobile networks). The company is headquartered in Switzerland, has subsidiaries in 20 countries and a workforce of some 2,300 employees worldwide.