Indra Takes Stake in ITP Aero, but Fails to Gain Influence
Indra, the technology company, has finally closed one of the most anticipated corporate operations in the Defense sector: its entry into the capital of ITP Aero, the Basque manufacturer of civil and military aviation engines. Indra has reached an agreement with the private equity fund Bain Capital, the majority shareholder of ITP, to take a smaller stake than initially expected, which will amount to 9.5% (as previously reported by EXPANSIÓN on June 29), for 175 million euros.
Indra’s participation will be indirect, through a vehicle that it will share with the Basque Institute of Finance (IVF). The vehicle will have around 15.5% of ITP directly. Indra will have slightly over 61% of that vehicle, which equates to a 9.5% stake in ITP, while IVF will have a 6% stake.
The operation values the Basque engine group at 1.842 billion euros, which amounts to around 2.5 billion euros including debt. This valuation represents an increase of nearly 80% compared to the price paid by Bain when it acquired the company from the British group Rolls Royce.
At that time, Bain paid 1.625 billion euros, of which around 1 billion euros corresponded to equity and the rest to debt. Bain reached an agreement with Rolls Royce in September 2021, but the approval from the Spanish government did not come until August 3, 2022, allowing the final purchase to be
How does Indra’s partnership with ITP Aero strategically position the company in the aviation industry and demonstrate its commitment to the Defense sector
Indra Enters Partnership with ITP Aero, Falls Short of Expected Influence
Indra, the leading technology company, has successfully concluded a highly anticipated corporate deal in the Defense sector by acquiring a stake in ITP Aero, a renowned manufacturer of aviation engines for civil and military purposes. However, Indra’s influence in the company falls short of initial expectations.
In collaboration with private equity fund Bain Capital, the majority shareholder of ITP, Indra has agreed to acquire a smaller stake than originally anticipated. The company will hold a 9.5% stake in ITP, valued at €175 million, as reported earlier by EXPANSIÓN on June 29.
Indra’s participation will be indirect, through a joint vehicle with the Basque Institute of Finance (IVF). This vehicle will directly own approximately 15.5% of ITP, with Indra holding slightly over 61% of the vehicle, equivalent to a 9.5% stake in ITP, while IVF will have a 6% stake.
The deal values ITP Aero at €1.842 billion, or approximately €2.5 billion including debt. This valuation represents an impressive 80% increase compared to the price paid by Bain Capital when it acquired the company from Rolls Royce, a British conglomerate.
Bain Capital completed the acquisition in 2021, paying €1.625 billion, of which around €1 billion constituted equity and the remaining amount was debt. However, the Spanish government’s approval for the transaction was only received on August 3, 2022, delaying the finalization of the purchase.
Indra’s entry into the capital of ITP Aero strategically positions the company in the aviation industry and allows for potential collaborations and synergies. Although the stake acquired is smaller than initially expected, Indra’s investment in ITP showcases its commitment to expanding its presence in the Defense sector.
¡Qué buena noticia! Indra haciendo movimientos estratégicos a pesar de las dificultades. ¡Seguro que esto impulsará a ITP Aero hacia el éxito! 💪🏼✨
Sarah: Me alegra ver que Indra no se deja detener por las limitaciones y sigue invirtiendo en compañías prometedoras como ITP Aero. ¡Adelante con esos planes de crecimiento!
John: Indra siempre mostrando su determinación y visión a largo plazo. Estoy emocionado por ver la colaboración entre Indra y ITP Aero. ¡Grandes cosas están por venir!