Saab announced on Monday that it has successfully completed negotiations with ThyssenKrupp Industrial Solutions for acquisition of its Marine Systems business.

The purchase price for ThyssenKrupp Marine Systems, formerly Kockums, is about $50.5 million and will be paid with currently available funds.

"This acquisition is in line with Saab's ambition to increase its capabilities in the naval domain." Saab said. "This move further strengthens Saab's status as a comprehensive supplier of military systems."

ThyssenKrupp Marine Systems designs, builds and maintains naval systems such as submarines and surface vessels. Other company products include air independent propulsion systems,

submarine rescue vehicles and mine counter-measures systems.

"Integration and development efforts will now begin to ensure that operations reach their full capacity," said Gunilla Fransson, head of Saab's Security and Defense Solutions business area. "It is important to achieve synergies with Saab's current naval business. This process must be allowed to take its course, but at the same time we begin deliveries of development, maintenance and production work to the Swedish market."

The transaction requires approval by the ThyssenKrupp board of directors and the Swedish Competition Authority.