Rheinmetall to Buy Over 25% Stake in Hungary’s 4iG Nyrt Company

  • Our Bureau
  • 03:11 AM, November 26, 2021
  • 936
Rheinmetall to Buy Over 25% Stake in Hungary’s 4iG Nyrt Company

Rheinmetall signed a letter of intent with Hungarian IT company 4iG Nyrt with an intention to buy 25.1% stake.

An agreement to this effect has now been signed by Rheinmetall and the majority shareholder.

The cooperation is designed to reinforce Rheinmetall’s position as a leading systems supplier for security technology in Central and Eastern Europe. When it comes to expanding into civil markets and new fields such as satellite technology, moreover, the planned cooperation offers excellent opportunities.

Headquartered and publicly listed in Budapest, 4iG is also expected to function as a digitization service provider for Rheinmetall in Hungary. Therefore, the creation of a separate joint venture by Rheinmetall (51%) and 4iG (49%) is planned in order to set up own IT infrastructure and services in Hungary.

By taking up a share in 4iG, Rheinmetall – in tandem with its new partner – will be able in future to expand its portfolio of digital products and digital services, supplementing its extensive range of defence technology systems and equipment. Thus, in the course of future cooperation, the partners will not only press forward with digitization of the armed forces (secure cloud, advances in C4ISTAR), but also materially develop and grow their capacity for delivering and protecting critical infrastructure as well as cybersecurity solutions.

As a shareholder in 4iG, Rheinmetall will have a direct holding in a supplier of critical infrastructure in Hungary and Central Europe, providing an indispensable service for safeguarding government, business and civil society in the information technology and telecommunication domain. This encompasses vital products and services for voice and data transmission as well as secure data infrastructure for government and administrative services, education and healthcare, but also for private sector customers. Besides their planned activities in the field of critical infrastructure, the partners have identified additional potential for cooperating in IT security, sensor technology, artificial intelligence, robotics and satellite communication.

Also Read

Rheinmetall Acquires German Drone Manufacturer EMT

November 23, 2021 @ 10:07 AM
FEATURES/INTERVIEWS