Moscow, Russia – 02 October 2015 – Sistema JSFC (“Sistema” or “the Company”), a publicly-traded diversified holding company in Russia and the CIS, today announces the acquisition of JSC Kronshtadt Group (“Kronshtadt”) and its assets from Industrial Investors Group and its partners for a consideration of RUB 4.8 billion. 

Kronshtadt Group comprises a number of innovative companies producing world-class high-technology products and solutions for the aircraft manufacturing, defence, security and transportation industries, as well as natural resource exploration (including in the Arctic region). 

Kronshtadt possesses a number of core technological competencies and unique intellectual potential in mathematical modelling and the development of advanced information systems, development and manufacturing commercial UAV systems, advanced integrated simulators and visualisation systems, and on-board and ground-based radioelectronic navigation. Kronshtadt’s competencies are strategically complementary to Sistema's portfolio company RTI Group. By utilising and leveraging these synergies, Sistema expects both companies to strengthen market positions while creating a platform for their future growth. 

“Kronshtadt Group is a prominent player on the Russian high-tech market with a set of competencies, products and solutions that complement those of RTI Group,” Sistema President and Chief Executive Officer Mikhail Shamolin said. “This acquisition will strengthen RTI’s current and future ventures, including its new business of developing and producing aerospace, monitoring and communications systems for government and commercial customers. It will also help RTI to enter new markets including airborne control and navigation equipment, as well as simulators and training systems.” 

“Sistema’s interest in Kronshtadt Group testifies to the success of our strategy as shareholders of this asset, and is the result of our efforts to create a competitive business with unique technological competencies and significant potential in high-demand market segments such as products and solutions for aircraft manufacturing and the security industry,” said Andrei Burlinov, CEO of Industrial Investors Group. “Being part of Sistema will have a positive impact on Kronshtadt’s growth prospects, and will allow Industrial Investors Group to focus on developing other projects, including its global technological solutions for maritime sector under the Transas brand, which will remain under our management.”

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