Norwegian defense company Kongsberg Gruppen is expected to put its plans to sell its digital business on hold after tepid interest from potential buyers, according to sources cited by Bloomberg News.
The company is leaning toward retaining the unit, which focuses on industrial software, for a longer period, although a sale process could be resumed at a later date.
Kongsberg stated last year that it was evaluating a sale together with JPMorgan Chase as part of a portfolio review aimed at freeing up capacity for its rapidly growing defense operations.
Kongsberg Gruppen ASA specializes in the development, manufacturing and marketing of technological equipment and systems for the maritime, oil and gas, defence and aerospace industries. Net sales break down by product family as follows:
- merchant ship and offshore drilling systems (50.3%): satellite positioning, monitoring and navigation systems, process automation systems, underwater communication systems, handling equipment, etc.;
- defence and aerospace systems (39%): command and control, surveillance and reconnaissance, tactical communication, remotely operated weapon stations, long-range missile systems, avionics structures and composite materials products, etc.;
- solutions for the sustainable management of marine resources and climate change monitoring (7.4%): primarily for offshore operations, fisheries, marine research, maritime operations, ocean-based energy production;
- other (3.3%): including digital solutions for the oil, gas and maritime sectors.
Net sales are distributed geographically as follows: Norway (18.2%), Europe (31%), North America (23.5%), Asia (20.5%), Australia (4.1%), South America (1.5%) and Africa (1.2%).
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