The deal, valued initially at EUR 70 million (approximately SEK 808 million) in cash, also includes 1,374,047 newly issued MilDef shares and a potential earn-out of up to EUR 4 million depending on 2024 performance targets. This acquisition grants MilDef access to valuable market channels, customer relationships, and framework agreements within high-growth Central European markets, where increased defence spending is anticipated.
Roda, established in 1987 and headquartered in Lichtenau, Germany, is known for its rugged mobile computing solutions primarily in the defence sector. “We are very pleased to welcome roda to MilDef,” stated Daniel Ljunggren, MilDef’s President and CEO. He added that Roda’s established customer relationships and framework agreements present significant opportunities for MilDef to cross-sell its own product lines, enhancing its role in Europe’s defence and security landscape.
The acquisition will be funded through a mix of new debt and an SEK 450 million directed share issue, which three major MilDef shareholders—Svolder AB, Andra AP-fonden, and Tredje AP-fonden—have expressed interest in supporting. These shareholders, alongside MilDef leadership, have committed to voting in favour of the acquisition at an Extraordinary General Meeting anticipated for 9 December 2024. Subject to regulatory approvals, the acquisition is expected to be finalised by the first quarter of 2025, with roda’s operations consolidated into MilDef’s accounts post-closing.
Roda’s CEO and founder, Martin Bertsch, expressed confidence in MilDef’s commitment to maintaining roda’s growth trajectory. “The main criteria when finding a new owner of roda was to find a partner that truly wanted to continue the successful growth journey of our company,” said Bertsch, describing the merger as an alliance of two defence technology leaders offering a stronger, more trustworthy market presence.
The acquisition will enable MilDef to leverage roda’s established sales channels to promote its own products, capitalising on synergies and shared resources between the two companies. MilDef also sees potential for cost efficiencies in joint procurement and expects to grow its customer base, particularly among global platform manufacturers active in the German market. Together, MilDef and roda are projected to achieve combined annual sales exceeding SEK 1.9 billion, with an adjusted EBITA margin of 13%.
With an experienced management team and a workforce of 115 employees across Germany, France, and the United Kingdom, roda brings a wealth of expertise in tactical IT solutions for defence. Roda’s product offerings are widely distributed through framework agreements with government agencies, defence procurement organisations, and defence contractors. Through the acquisition, MilDef is positioned to support defence enhancements across Europe, meeting the region’s growing demands for advanced security capabilities.
