Honeywell is to acquire Italian inertial system supplier Civitanavi Systems with an eye on boosting its autonomous product offering.
Honeywell will initiate a voluntary tender offer to acquire all outstanding shares of Civitanavi for a purchase price of €6.30 ($6.92) per share in cash. This works out to an equity value of approximately €200m at closing.
The move supports Honeywell’s alignment of its portfolio around trends including the future of aviation and automation. Together with Civitanavi, Honeywell will be able to offer a broader set of technologies to its customers. Civitanavi’s products including inertial navigation, geo reference and stabilisation systems. Civitanavi specialises in high-performance Fiber Optic Gyro technology that Honeywell has not previously offered in its navigation portfolio.
Jim Currier, Honeywell Aerospace Technologies President and CEO, said: “By integrating Civitanavi’s inertial technologies and sensors across Honeywell’s existing commercial, military, space and industrial platforms, our customers across the globe will now have access to a more robust portfolio of aerospace navigation solutions in support of their journey toward autonomous operations.”
The purchase price payable at closing represents a premium of approximately 27.1% to the 30-day volume-weighted average trading price of Civitanavi’s stock on the last day of trading before the announcement of the transaction (March 26, 2024). Honeywell has already secured the commitment of Civitanavi’s controlling shareholder, which owns approximately 66% of the firm’s outstanding shares.
The transaction is not subject to any financing condition and is expected to close in the third quarter of 2024.
“With this acquisition, we will be able to immediately expand our offerings to customers in the European Union through Civitanavi’s navigation solutions, a capability we intend to further build out in the near-term,” Currier added. “We look forward to adding this critical technology to our portfolio to help accelerate the growth of our Aerospace business. We are excited to welcome Civitanavi’s talented workforce as our newest Honeywell Futureshapers.”
