We advised Milrem Robotics, Europe’s leading developer of robotics and autonomous systems in the merger with EDGE Group, an UAE-based technology and defence group.
EDGE Group, one of the world’s leading advanced technology and defence groups acquired a majority stake in Milrem Robotics, an Estonian robotics and autonomous systems developer.
Milrem Robotics’ mission is to provide innovative robotic solutions for challenging environments. It specialises in the development of intelligent unmanned ground vehicles, robotic warfare solutions, Concept of Operations (CONOPS) and doctrine level warfare analysis. Milrem Robotics’ products have been sold to 16 countries, eight of which are NATO members: the United States, Estonia, Spain, the Netherlands, Norway, France, Germany, and the United Kingdom.
Major transaction for the market
The transaction is the largest foreign investment in Estonia’s growing defence industry, and will see Milrem Robotics join EDGE as a new entity within its Platforms & Systems cluster, complementing the group’s existing multi-domain capabilities.
The majority stake taken by EDGE is viewed as a strong signal to international investors of the valuable opportunities now available in Estonia’s advanced technology and defence sectors.
General (ret) Riho Terras, Chairman of the Supervisory Board of Milrem Robotics, concluded: “The addition of EDGE as a new majority owner will allow Milrem to increase production, hire new people, acquire new know-how and also significantly expand its product portfolio, thereby become a stronger company internationally. This in turn allows the company to significantly and more efficiently contribute to the development of Estonia’s defence capability. EDGE is a leading global defence industry group with a very wide reach and impressive resources.”
Looking into the future
Kuldar Väärsi, founder and CEO of Milrem Robotics, added: “Milrem Robotics carried out an intensive investment round aimed at finding ways to support further expansion, and EDGE Group, which comprises 20 different state-of-the-art technology and defence entities across multiple domains, offered the best opportunity for us to realise our ambitions of further international growth, in terms of footprint, and the development of our industry-leading solutions.”
Mansour AlMulla, Managing Director & CEO of EDGE Group, further added: “EDGE today is one of the world’s leading advanced technology and defence groups with a strong foothold across four continents. There is great potential here for both companies, and our investment in Milrem will allow it to take advantage of EDGE’s considerable resources to offer our customers operating in perpetually changing operating environments a more robust portfolio of superior autonomous systems at competitive costs. A presence in Estonia also provides EDGE with strategic access to Northern Europe, increasing valuable opportunities for us across the continent and further afield, and strengthens our position as a serious global player in this sector.”
Milrem Robotics will continue to be based in the Estonian capital Tallinn, and also operates offices in Finland, Sweden, the Netherlands, and the USA, employing approximately 200 skilled personnel.
After the transaction, EDGE will have majority control of Milrem Robotics. Other shareholders include Krauss Maffei-Wegmann, company founder, CEO Kuldar Väärsi, and Estonian private investors, among them company employees as minority shareholders.
Our services and client team
We advised Milrem, its majority shareholder and most of the minority shareholders in all aspects of the transaction process. Our client team was led by partner Piret Jesse and senior associate Robin Teever.