SEOUL -- LIG Nex1, a South Korean defense contractor known for advanced missile guidance systems, acquired Innowireless, a promising IT company involved in the production of communication equipment, to diversify its business portfolio into the civilian wireless communication sector.
LIG Nex1 said in a regulatory filing on November 6 that it has exercised a call option to acquire a 16.55 percent stake in Innowireless for 33.1 billion won ($29.4 million). As a result, LIG Nex1 would become the largest shareholder of Innowireless with its total stake increasing to 21 percent.
In 2018, LIG Nex1 and a private equity fund made a joint investment in Innowireless that develops telecom test and measurement equipment. The call option would be exercised on November 9. LIG Nex1 produces a wide range of advanced precision electronic systems such as missiles, torpedoes, radars, tactical communication systems, naval combat systems, avionics and electro-optics.
The acquisition is aimed at creating new opportunities in civilian and defense markets by combining LIG Nex1's core capabilities in precision electronics with Innowireress' technology related to field optimization, base station analyzing and network testing.
"We hope the acquisition will not only help us find a way to grow together through cooperation and exchanges between the two companies but also further enhance our technological capabilities in the domestic defense industry and the wireless communications sector," said LIG Nex1 CEO Kim Ji-chan.
LIG Nex1 is involved in the development of an autonomous coastguard patrol boat and electromagnetic waves that can be used in radar and other types of military equipment. The company produced Poniard, a multiple launch rocket system with guided rockets, which has passed an evaluation test by the Pentagon.
The Poniard is a 70mm (2.75-inch) low-cost guided imaging rocket (LOGIR) with a flying range of about eight kilometers and is equipped with guided control devices. It is a standalone weapon system with one shot one kill and fire-and-forget capability. Once the rocket is launched, no designation of the target is needed as it flies automatically towards its target.
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