SSH Communications Security Oyj has announced an intention to enter into a strategic partnership with Leonardo S.p.A. The partnership is supported by a financial investment of about EUR 20,000,000 with an issue of over 13.3 million new shares with the subscription price of EUR 1.50 per share to Leonardo.
Following completion of the Leonardo Share Issue, Leonardo will become the largest shareholder of SSH. The current largest owner, Accendo Capital, with currently 27.66%, will become the second largest owner with 20.87%.
The Leonardo Share Issue is not conditional on any external financing being obtained.
The Strategic Partnership Agreement will grant Leonardo exclusive worldwide (excluding the Nordic countries) rights to offer capabilities for defence and governments -including NATO, European Union institutions, bodies and agencies, police & intelligence agencies and critical infrastructures, where SSH’s modern, innovative PrivX and NQX solutions would be embedded in Leonardo’s offering for comprehensive Zero Trust Project and Security Services.
“This is great development and a major milestone for SSH. Through the strategic partnership with Leonardo and the related share issue, SSH is getting a solid industrial major shareholder whose own key market area is increasingly requiring more cyber security solutions. The partnership makes it possible for SSH to address and penetrate the fast-growing cyber security market within the defence sector in a totally different way compared to before. We have been focusing as the main owner on finding a way for SSH to drive for new meaningful growth from growing market areas, of which the defence sector is one of the most interesting at the moment. We are extremely happy to have Leonardo as strategic partner for SSH, and we see potential through this partnership for both companies” says Henri Österlund, the Chairman of the Board of Directors for SSH, and simultaneously the Founding Partner for Accendo Capital.
“We are excited to enter this strategic partnership for the fast-growing cyber security market. SSH’s PrivX and NQX have already proven their value as innovative and advanced and modern Zero Trust Privileged Access Management and future-proof Quantum Safe Network Security solutions. By integrating the offering with Leonardo’s strong presence in the Defence, Aerospace & Space and Critical Infrastructures markets we expect to realise significant synergies and generate new business opportunities. SSH has been at the forefront of encryption and is a leader in the transition to Quantum Safe PQC encryption across its solutions,” says SSH CEO Rami Raulas.
“Cybersecurity represents one of the strategic development areas of our industrial plan. With this acquisition, Leonardo increases its portfolio in an international perspective, positioning itself as a reference point to lead the Zero Trust revolution in Europe. The agreement combines SSH’s technological expertise with Leonardo’s technologies and solutions, advanced assets and services, and domain-specific knowledge. In an environment where threats evolve rapidly and regulations become more stringent, organisations increasingly need advanced future-proof solutions,” states Roberto Cingolani, Chief Executive Officer and General Manager of Leonardo.
SSH is pursuing significant commercial opportunities in close collaboration with Leonardo. These initiatives are specifically aimed at enhancing the protection of critical infrastructures, a field of paramount importance.
The Strategic Partnership Agreement has been signed, but the completion of the Leonardo Share Issue is a condition for the entry into force of the Strategic Partnership Agreement.
