BERLIN, Sept 23 (Reuters) – Germany is set to order encryption technology worth up to €1.7 billion ($1.9 billion) for armed forces data networks from security company Secunet, a document seen by Reuters on Wednesday showed.
According to the document, a key parliamentary committee is set to give the go-ahead on Wednesday for an agreement with the company to modernise the encryption of the Bundeswehr’s communications networks.
Deliveries on a first order worth just over €100 million are due to commence next year.
The wider framework deal, which builds on an existing agreement with the company, has a term of four years. Secunet would build a so-called ‘Secure Inter-Network Architecture’ (SINA) as well as provide planning, maintenance, training and repairs.
Shares in Secunet surged 11% at 1022 GMT on the news.
Financing is secured via a so-called commitment authorisation for the following year. In addition, the ministry of defence anticipates follow-up costs of around €6 million for use up to 2030.
($1 = 0.8763 euros)
(Reporting by Markus WacketEditing by Ludwig BurgerWriting by Linda Pasquini)
