Italian shipbuilder Fincantieri has agreed to buy four Italian subsea technology companies for an initial investment of about €600 million ($685.1 million).
Fincantieri shares rose as much as 14 per cent on the news that it will buy majority stakes in Next Geosolutions, WSense, Graal Tech and Defcomm.
The acquisitions expand Fincantieri's presence in marine survey and geoscience services, marine construction support, unmanned underwater and surface drone technologies, and wireless communication systems for the so-called internet of underwater things, which connects smart equipment wirelessly underwater.
CEO Pierroberto Folgiero said the fastest-growing opportunities in the sector were in defence, dual-use applications serving both military and civilian customers, and commercial activities including surveys, construction support and deep-sea mining.
On a pro-forma basis, Fincantieri's underwater technology operations are expected to generate €1.1 billion in revenue and €220 million of core profit this year, achieving its 2030 targets for the underwater businesses ahead of schedule.
The acquisitions are expected to contribute more than €60 million to group net profit this year and about €130 million by 2030, with earnings per share projected to rise about 30 per cent by 2028 and 20 per cent by 2030.
At group level, the acquisitions will drive a 13 per cent increase in 2026 pro-forma core profit and a 40 per cent rise in pro-forma net profit.
The deals are being financed through the proceeds of a €500 million capital increase completed in February and other resources, with no impact on guidance for 2026 net debt and core earnings.
The deal for Milan-listed NextGeo will give Fincantieri about 57 per cent of the company, paving the way for a mandatory offer for the remaining shares.
The maximum consideration for the four acquisitions could rise to "a little above" €1 billion including NextGeo's offer, CFO Giuseppe Dado told analysts, adding that the deals would not affect the group's deleveraging, which is to accelerate once they are consolidated.
(Reporting by Claudia Cristoferi and Mirko Miorelli; Editing by Joe Bavier, David Goodman and Jan Harvey)