Indra's board today debates the acquisition of Escribano to strengthen its defense.
Ángel Escribano, president of Indra, and his brother, Javier, president of EM&E, will abstain from the meeting as their company is the second largest shareholder in the technology company.
BarcelonaIndra's board of directors will hold an extraordinary meeting this Thursday to begin discussions regarding a potential transaction with Escribano Mechanical & Engineering (EM&E) to strengthen its defense business, according to sources familiar with the matter confirmed to Europa Press. No agreement is expected to be reached today, nor is any communication to the National Securities Market Commission (CNMV) regarding this potential transaction expected.
Furthermore, both Indra's chairman, Ángel Escribano, and his brother and chairman of EM&E, Javier Escribano, will abstain from the board meeting regarding discussions regarding the potential transaction. EM&E, which owns 14.3% of Indra's share capital, is owned 50/50 by Javier and Ángel Escribano, the latter having been chairman of Indra since January 19, following Marc Murtra's departure to Telefónica. Escribano is Indra's second largest individual shareholder, behind the State, which holds 28% through the State Industrial Participation Company (SEPI).
The potential merger with EM&E would mean Indra incorporating an arms company into its perimeter, a business in which the company has already expressed interest. In this regard, EM&E develops, among other products, turrets for tanks and armored vehicles, the latter a market in which the company also participates alongside Indra, Sapa Placencia, and Santa Bárbara Sistemas (owned by General Dynamics) through Tess Defense, the company that has been awarded the contract to manufacture the 8x8 Drag for the Spanish Army.
Added value
In fact, at the beginning of last May, Indra's CEO, José Vicente de los Mozos, acknowledged that the possibility of carrying out a merger with EM&E would represent "added value" for the company in its ambition to become the driving force in the defense sector in Spain. In this context, it is worth noting that EM&E has appreciated thanks to the current geopolitical situation and the advancement of the defense sector. This was reflected in the 2024 financial statements, with a net profit of €112.56 million, 1,170% more (almost 13 times more) than the previous year.
Among the factors that have most influenced the company's significant growth are investment in R&D (€62 million in 2024) and the acquisition of new production capacities, such as the purchase of Aunav, the former robotics unit of NTT Data, for €6.8 million in the past. In addition, "EM&E's business model has been strengthened by the acquisition of a significant stake (14.3%) in the shareholding of the leading company in the defense sector (Indra), which will allow access to negotiation scenarios for key projects for Spanish defense." Regarding the forecasts for this year, as EM&E's president, Javier Escribano, announced at the end of March, the company's goal is to achieve revenues of around 400 million euros by 2025.
