Orbital sells Synerject stake for $25m

Balcatta-based Orbital Corporation has sold its stake in engine management systems supplier Synerject to partner Continental Automotive Systems for $US17.8 million ($A24.9 million).

Under the terms of the agreement, Continental will acquire Orbital’s 30 per cent stake in Perth-founded Synerject for the cash sum, and will move to full ownership of the business.

Synerject will continue to supply ‘key services and components’ to Orbital, while Orbital will use the proceeds of the sale to advance its UAV engine business, its Remsafe mine safety product, and its Orbital Accelerator.

Orbital managing director Terry Stinson said the transaction was a mutually beneficial and positive conclusion to the successful joint venture with Continental.

“Synerject is a global business which grew from our WA headquarters and has developed a unique global portfolio of clients which benefit from Orbital and Continental’s expertise in gasoline fuel injection system design, components manufacturing and system integrating,” Mr Stinson said.

“The sale of our stake will allow Continental to focus on aligning Synerject into their wider global business and recapturing revenue and profitability.”

Shares in Orbital were 5.1 per cent higher to 61 cents each at 1pm.