Adacel - steps out into virtual ATC systems

Adacael (ADA) announced a small acquisition of on the virtual remote air traffic control technology space. Its buying the technology from an Estonian company Cybernetica which had been developing the technology for its only client the Estonian Air Navigation Services since 2016. The technology is close to being operational with final sign-off by the client expected soon. The expected revenues from the contract are not significant, abeit they may cover the Estonian based software developers costs. The technology can be resold as software and intime as an air traffic management outsourced service. The acquisition will strengthen the software product offering in the Air traffic management business segment. The acquisition will take time to contribute to the business in a meaningful way.

The 2023 profit guidance missed expectations with internal investment elevated in an attempt to chase over $100M contract value of largely service contracts.