Indra Acquires Majority Stake in TESS Defence

Indra, a leading global technology and defence company, has successfully acquired a 51.001% majority stake in TESS Defence, marking a significant step in bolstering Spain’s capabilities in land defence programs. This strategic move, approved by Indra’s Board of Directors, includes the acquisition of an additional 26.33% of TESS from existing partners GDELS-Santa Bárbara Sistemas, SAPA, and Escribano.

With this acquisition, TESS Defence will transition to a new governance model featuring a board of seven members—four from Indra and three from the founding partner companies. This shift aims to enhance operational efficiency and accountability, establishing TESS as the prime contractor for key projects within the Ministry of Defence, including the 8×8 Wheeled Combat Vehicle (WCV) and the Tracked Support Vehicle (TSV).

Indra’s majority control over TESS is poised to transform the company into a benchmark for Spain’s armoured land vehicle programs. The deal allows Indra to tap into a potential portfolio worth over €10 billion in armoured land vehicles over the next 15 years, encompassing firm orders for more than 700 vehicles and prospects for additional orders exceeding 1,000 units. The total market potential, including maintenance and exports, could surpass €30 billion in the next two decades.

This acquisition significantly strengthens Indra’s presence in the land defence sector, expanding beyond its previous focus on mission systems. It positions the company to manage large-scale domestic and international defence programs and enhances its export potential, reinforcing its role as a national coordinator in major European terrestrial initiatives.

To support its new responsibilities, TESS will assume key functions including program management, engineering, vehicle integration, and final assembly. The company is also committed to establishing a new centre in Asturias to centralize its industrial and design engineering resources, thereby attracting talent and bolstering high-quality employment opportunities.

This restructuring aligns with Spain’s industrial strategy aimed at achieving greater sovereignty and strategic autonomy in defence capabilities. TESS is set to streamline operations and optimize ongoing projects while effectively addressing strategic national initiatives.

As part of the acquisition agreement, a specific plan for knowledge transfer will be implemented to ensure the continuity of assembly, integration, verification, and approval activities at TESS. The founding companies will remain shareholders and board members, ensuring ongoing collaboration and expertise-sharing.

Indra’s acquisition forms part of its “Leading the Future” strategic plan, announced in March 2024, which seeks to position the company as a key player in the Spanish defence ecosystem. This move mirrors similar consolidations seen in neighbouring countries such as the UK, Italy, and France, establishing a national defence champion.

The acquisition is subject to customary regulatory approvals, after which Indra plans to fully integrate TESS into its operations. This consolidation not only enhances Indra’s competitiveness in the global market but also aligns with the principles of the Defence Industrial Strategy put forth by Spain’s Secretary of State for Defence, promoting joint participation in defence programs.

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