AEC’s acquisition by SAMI to double sales in next 3 years

Riyadh-based Advanced Electronics Company (AEC) is expecting to double sales in the next two to three years following its acquisition by Saudi Arabian Military Industries (SAMI), a senior company executive told Argaam.

“With the acquisition of SAMI, we are expecting our sales to double in the local market in the next two to three years,” Ziad H Musallam, executive vice president, engineering and operations, AEC, said in an interview on the sidelines of the Gitex Technology Week in Dubai.

In June, SAMI, which is 100 percent-owned by the Public Investment Fund (PIF), signed a term sheet agreement to acquire 100 percent ownership in AEC, which reported net sales of SAR 2.07 billion in 2018 compared to SAR 1.93 billion in 2017.

Following the acquisition, AEC is set to form the core of establishing SAMI’s original equipment manufacturer (OEM)-agnostic defense electronics and indigenous defense technology solutions business division.

SAMI aims to localize 50 percent of the Kingdom’s military spending by 2030.

Speaking on AEC’s participation in Gitex, Musallam said the company will be signing collaboration agreements with government entities and partner companies to strengthen its position as a key enabler of Saudi Arabia’s digital transformation journey. 

The company will also explore new opportunities for collaboration in its drive to achieve the objectives outlined in Vision 2030, he added.

AEC is currently showcasing smart airport solution, smart mosque solution, cybersecurity solution and remote patient monitoring solution at the tech event.

Write to Parag Deulgaonkar at parag.d@argaamplus.com