Piper Alderman advises on landmark sale of specialised defence technology to BAE Systems Australia

Piper Alderman has advised the shareholders of Schach RF Pty Ltd (Schach) on the sale of their shares to BAE Systems Australia Limited (BAE).

Schach is a South Australian-based engineering firm specialising in the design and manufacture of high‑powered Radio Frequency (RF) amplifier systems used in military applications, scientific research and Over-the-Horizon Radar (OTHR) technology. Schach partners and collaborates with major defence primes and government organisations, most notably with BAE on the $1.2 billion upgrade of Australia’s Jindalee Operational Radar Network (JORN). JORN provides wide-area air and maritime surveillance and support of the Australian Defence Force’s border protection, disaster relief and rescue operations.

BAE is one of Australia’s most established defence and security companies and was a natural acquirer of Schach given the longstanding collaboration between Schach and BAE, including in respect of the JORN program and BAE’s broader strategy of strengthening Australian defence capabilities. Notably, BAE will support the government as the OTHR industry partner for delivering the landmark $2.5 billion agreement between the Australian and Canadian governments for the export of Australian OTHR technology to bolster Canada’s Arctic defence capabilities, marking the biggest defence export agreement in Australia’s history. The strategic acquisition of Schach enables BAE to deepen its RF technology offering in support of this major project and reinforces its commitment to delivering critical defence infrastructure.

The Piper Alderman team, led by Corporate Partner James Dickson and Associate Bonnie Doyle, supported by Lili Caltabiano and Lily Hams, advised Schach on all aspects of the transaction. The deal required the team to navigate a range of complex legal and regulatory issues, including obtaining approval from Australia’s Foreign Investment Review Board and negotiating contingent consideration arrangements tied to significant post-completion performance milestones.

Our experience in mergers and acquisitions, our commercial and pragmatic approach to deal management and our expertise across a number of specialist areas of the law enabled us to manage the deal to a successful conclusion for our clients.