Honeywell to acquire Civitanavi Systems to enhance autonomous operations capabilities

Civitanavi’s high-precision inertial navigation and stabilization solutions will help drive long-term growth across Honeywell’s commercial and defense businesses

Honeywell has revealed plans to acquire Civitanavi Systems S.p.A.  The acquisition will be carried out through a voluntary tender offer, with Honeywell proposing a purchase price of €6.30 per share in cash, amounting to an equity value of approximately €200 million upon completion.

This strategic acquisition aims to bolster Honeywell’s expertise in facilitating autonomous operations across various platforms, including aircraft and other vehicles. It aligns perfectly with Honeywell’s focus on three key megatrends, notably the future of aviation and automation. By joining forces with Civitanavi, Honeywell aims to expand its technological offerings globally, catering to both established operators looking to enhance their fleets’ autonomous capabilities and emerging players in the Advanced Air Mobility sector.

The proposed purchase price represents a substantial premium of around 27.1% over Civitanavi’s 30-day volume-weighted average trading price as of March 26, 2024, the day preceding the acquisition announcement. Honeywell has already garnered the support of Civitanavi’s majority shareholder, who holds approximately 66% of the company’s outstanding shares, to tender their shares in the offer.

The acquisition is anticipated to conclude in the third quarter of 2024, contingent upon standard closing conditions. These include obtaining necessary antitrust approvals, compliance with foreign direct investment regulations in Italy, the United Kingdom, and Canada, and the successful tendering of at least 95% of Civitanavi’s outstanding shares.

Civitanavi specializes in position navigation and timing technology, catering to aerospace, defense, and industrial sectors. Both Civitanavi and Honeywell boast a rich history of developing state-of-the-art inertial navigation solutions utilizing accelerometers, sensors, and gyroscopes. Civitanavi’s product lineup, featuring high-performance Fiber Optic Gyro technology, will complement Honeywell’s existing navigation and sensors business, filling a technological gap in Honeywell’s portfolio.

Jim Currier, President & CEO of Honeywell Aerospace Technologies, commented on the acquisition, stating, “By integrating Civitanavi’s inertial technologies and sensors across Honeywell’s existing commercial, military, space, and industrial platforms, our customers across the globe will now have access to a more robust portfolio of aerospace navigation solutions in support of their journey toward autonomous operations.”

Currier further added, “With this acquisition, we will be able to immediately expand our offerings to customers in the European Union through Civitanavi’s navigation solutions, a capability we intend to further build out in the near-term. We look forward to adding this critical technology to our portfolio to help accelerate the growth of our Aerospace business. We are excited to welcome Civitanavi’s talented workforce as our newest Honeywell Futureshapers.”

Legal counsel for Honeywell in this transaction is being provided by Bird & Bird, while UniCredit is serving as the financial advisor.