Codan enters US with communications acquisition

Defence communications and metal detection manufacturer Codan Group is expanding into the United States with the acquisition of 100% of US-based networking communications specialist SKT2 LLC dba Kägwerks (Kägwerks).

The acquisition, made through subsidiary Codan US Inc., is valued at $33.6 million together with royalty payments for five years post-closing based on agreed annual sales targets being achieved.

Kägwerks is a global leader in tactical operator-worn networking communications technologies that enable connectivity and integrated secure networking in a military environment, while Adelaide based Codan is known for secure radio communications systems.

Kägwerks has developed a portfolio of proprietary DOCK branded hardware and software solutions that provide soldiers with a lightweight network hub integrating disparate equipment into a single compact communications solution.

In 2022, Kägwerks was selected as a provider of the US Army Nett Warrior Secure Wired and Wireless Intra-Soldier Network Hub (Nett Warrior Program), which is a funded and stable Department of Defence (DoD) acquisition Program of Record.

More than 30,000 DOCK products have been fielded to date across the US Army.

Codan’s Tactical Communications President and Executive General Manager Paul Sangster said: “Kägwerks’ intellectual property has been field-tested and accepted into U.S Department of Defence, and its proven pedigree enables us to participate in additional tenders for other programmes.

“A key strategic objective is to improve our revenue predictability, and by participating in Programs of Record this will increase predictability by securing stable, long-term multi-year contracts.

“The compatibility of DTC’s mesh radio with Kägwerks’ technology is highly complementary for our existing business – together Tactical Communications and Kägwerks represent a full solutions provider that will increase opportunities across key military and law enforcement markets.”

Kägwerks’ recently developed next generation DOCK-Ultra product (pictured) that supports high-powered tactical artificial intelligence (AI), which will further enhance situational awareness and decision-making capabilities, and improve response times in critical situations, according to Codan.

“Its tactical operating system is designed to optimise battlefield intelligence by giving soldiers access to AI at the edge, ultimately increasing mission success and soldier safety.”

Picture: Kägwerks/DOCK-Ultra