Patria to Acquire Tekla Defence Business

Released on Friday, February 09, 2007

Patria and the Finnish Tekla have signed a Letter of Intent concerning transfer of Tekla's Defence business to Patria's ownership. Completion of the transaction is subject to a final agreement and a Due Diligence process.

Tekla's Defence business employs over 20 persons and it is located in Espoo, Finland. The business area�s net sales were slightly over 2 million euros in 2006. Tekla Defence develops new-generation systems focusing on situational awareness, command and control as well as fire management.

"The deal will strengthen Patria's competence at our Systems and Services Business Segment especially regarding the systems we develop for defence and security market. Teklas's know-how and competences strengthen Patria's position in the future projects with the Finnish Defence Forces and in the export market", states Mr Jukka Holkeri, Executive Vice President of Patria.

"Our Defence business is profitable, and we have enjoyed our long-term cooperation with the Finnish Defence Forces. The decision to sell was not an easy one. However, Tekla wishes to focus further on product-oriented international business, so it is time to divest the Defence business area and its project-based business which operates in Finland. In addition, in our view the Defence business has greater potential for development in the hands of Patria, who is a specialist in this field", comments Ari Kohonen, President and CEO of Tekla Corporation.

Patria' Systems and Services Business Segment supplies among other things advanced systems and equipment for both defence forces and satellite manufacturers. The core competence areas are systems for command and control as well as situational awareness, system integration and life cycle support services. The Systems and Services Business Segment is also a leading provider of life cycle services for aircraft and helicopters, as well as flight training in Northern Europe.

Patria is a defence and aerospace group with international operations delivering its customers competitive solutions based on own specialist know-how and partnerships. Patria is owned by the State of Finland and the European Aeronautic Defence and Space Company EADS N.V.

Tekla is a leading international software company whose innovative software solutions make customers' core businesses more effective in building and construction, energy distribution and in municipalities.