Babcock takes step closer to nabbing Australian armed forces contract

(Alliance News) - Babcock International Group PLC has been selected by the Australian government ...

Alliance News 6 December, 2021 | 4:14PM
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(Alliance News) - Babcock International Group PLC has been selected by the Australian government as the preferred tenderer to upgrade and sustain a communication system for their armed forces, the London-based engineering firm said on Monday.

The contract would see Babcock, which provides aerospace, defence and nuclear engineering services, upgrade and sustain the defence high frequency communication system for the Australian armed forces over the next 10 years.

Babcock said it will now enter a period of commercial discussions, and pending a final Australian government decision, will be awarded the contract formally.

The contract has four extension options, for two years each. Babcock did not mention the value of the potential contract.

"Babcock Australasia will collaborate with Lockheed Martin Australia, and the Australian Defence Force, to deliver an upgraded system which provides effective long-range communications capability for Australia’s land sea and air assets. The result is a robust sovereign solution that provides the ADF with a performance edge across its operations," Babcock said.

This follows two similar contracts in the UK and New Zealand.

"I am absolutely delighted that we have been selected as preferred tenderer for this internationally significant capability programme for the Australian Government. Babcock has a strategic and expanding role in providing these critical services to three of the Five Eyes intelligence alliance partners, where interoperability and interchangeability are becoming vital," said Chief Executive David Lockwood.

Babcock shares were up 3.8% to 306.20 pence each in London on Monday afternoon.

By Greg Roxburgh; gregroxburgh@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Babcock International Group PLC 325.60 GBX 0.34 -

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