Front Ventures AB acquires a 25% stake in Aviation Center Engelholm Fastighets AB, marking its entry into the defense industry with plans to expand its investments in technologically advanced solutions.

Information on the Target

Front Ventures AB (publ) has recently made an important correction regarding an earlier press release, which omitted a crucial MAR label reference, required by the EU Market Abuse Regulation. The company is focused on its new investment sector targeting the defense industry alongside its existing Fintech sector. The latest investment involves acquiring 25% of shares in Aviation Center Engelholm Fastighets AB (ACE), with an option to purchase the remaining 75% within three years at the same valuation as the current transaction. The acquisition price is set at 3 million SEK and will be financed through a three-year promissory note.

This investment in ACE is strategic as it provides direct access to physical infrastructure within a protected area, facilitating the operation of additional companies in the defense sector. ACE owns a fully leased, strategically located hangar at the former F10 airbase in Ängelholm, which can serve as a physical hub for portfolio companies requiring high-security classification and access to airfield infrastructure. This initiative is set to create a specialized incubator environment, enabling companies in the defense sector to access both infrastructure and expertise via Front Ventures and its network.

Industry Overview in Sweden

The defense sector is increasingly recognized as a high-value investment area in Sweden, driven by escalating global security needs and rising defense budgets. The current geopolitical climate in Europe is leading NATO countri