Indra Acquires Spanish Land Vehicles Maker, TESS Defence

Indra’s Board of Directors approved the acquisition of a 51.001% majority stake in TESS Defence (TESS) on September 30.

The deal is a strategic acquisition for Indra that will position TESS as the prime contractor for the Spanish Army’s current and future armoured vehicle programmes, including the 8x8 WCV (Wheeled Combat Vehicle), the TSV (Tracked Support Vehicle) and their derivatives and subsequent phases.

This opportunity will be reflected in access to a potential portfolio in Spain amounting to over 10 billion euros in armoured land vehicles over the next 15 years, with more than 700 vehicles with firm orders and additional opportunities for over a thousand vehicles.

It also includes modernization and new platforms, as well as maintenance and sustainment throughout the life cycle. In total, in global terms, taking into account exports and including recurrent maintenance, the potential portfolio that TESS is seeking will exceed 30 billion euros over the next twenty years.

Moreover, the assumption of a majority stake in TESS will reinforce Indra’s presence in the land defence industry, which has been limited to the field of mission systems until now. The operation will reinforce Indra’s capacity to lead and manage large domestic and international programmes, boost its export potential and allow it to act as the national coordinator in major European terrestrial programmes.

This new configuration of TESS will comply with Spain’s industrial strategy of gaining sovereignty and strategic autonomy in Spain and Europe and provide the Ministry of Defence with a body to centralise the development of land defence vehicles.

The consolidation of TESS will be articulated by means of Indra’s acquisition of an additional 26.33% of the company from the other partners to secure a 51.001% stake with a new governance model and responsibilities. The founding companies (GDELS-Santa Bárbara Sistemas, SAPA and Escribano) will continue to be shareholders and board members of TESS. A specific plan to transfer knowledge to TESS for the assembly, integration, verification and approval activities has been defined as part of the agreement to ensure business continuity.

This operation forms part of the Leading The Future strategic plan announced by Indra in March, in which it established its aim to become the national coordinator leading the Spanish defence ecosystem. Neighbouring countries such as the United Kingdom, Italy and France have already executed this consolidation towards a national defence champion. Becoming the majority partner in TESS constitutes a major step for Indra.