Codan acquires US-based engineering company for $21m to boost defence tech
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The news: Codan has acquired US-based engineering company Adaptive Dynamics, through its subsidiary DTC Communications, valued at approximately $21 million, with completion expected in the first half of FY27.
The context: The acquisition is aimed at boosting DTC’s US-based technical capabilities in unmanned systems, while strengthening its position in the US and allied defence programs that require electronic warfare resilience and AI-enabled integration in electromagnetic environments.
Codan stated that a tiered royalty structure, funded out of its operating cashflow, will pay for Adaptive Dynamics’ technology licenses sold over the five-year period following completion.
The company added that the transaction is projected to be earnings neutral in its first year of ownership, with the primary focus being the integration of Adaptive Dynamics’ technology into DTC’s existing product portfolio and expanding its market growth beyond FY27.
What they said: “This acquisition further strengthens DTC’s positioning in next-generation defence opportunities requiring resilient communications, electronic warfare resilience, AI-based integration and mission assurance across increasingly contested spectrum environments,” DTC executive general manager Paul Sangster said.
“This capability is increasingly critical for DTC’s customers reflecting real-world operational demands and evolving battlefield requirements,” he added.
The source: ASX
