ADELAIDE: Codan Limited said Friday it has agreed to acquire the intellectual property of U.S.-based engineering firm Adaptive Dynamics, a move aimed at strengthening its mission-critical communications systems against electronic jamming and interference.
The transaction, executed through Codan’s wholly owned subsidiary DTC Communications Inc., is valued at approximately $21 million in upfront and contingent payments tied to technology development and integration milestones over the next two years. Codan will also pay a tiered royalty from operating cash flow on sales of Adaptive Dynamics’ technology licenses over five years following the deal’s completion.
Adaptive Dynamics specializes in anti-jamming technologies, interference mitigation and assured positioning, navigation and timing for defense and national security systems across land, sea and air domains. The company brings more than two decades of experience in radio frequency engineering and advanced algorithms designed to maintain communications in congested and contested electromagnetic environments.
Codan expects the acquisition to enhance DTC’s U.S.-based technical capabilities in unmanned systems and strengthen its position for next-generation U.S. and allied defense programs requiring resilient communications, electronic warfare resilience and AI-enabled integration.
The transaction is expected to be earnings neutral in the first year of ownership as Codan focuses on integrating Adaptive Dynamics’ technology into DTC’s product portfolio. The company said the deal will help accelerate DTC’s electronic warfare capability and support growth beyond fiscal 2027.
“Adaptive Dynamics’ technical expertise in interference mitigation and signal processing strengthens our ability to deliver communications systems that perform under the most challenging operational conditions,” said Paul Sangster, DTC president and executive general manager.
Codan said it looks forward to working with Adaptive Dynamics’ staff and customers to achieve a seamless integration. The announcement was authorized by Codan’s board of directors.
