Rosatom completed the acquisition of 50% in electronics manufacturer Kraftway

According to Kommersant, Rosatom has completed the acquisition of 50% in electronics manufacturer Kraftway. The cost of the transaction may be 3.5–5 billion rubles. In 2024, Rosatom plans to invest another 2–3 billion rubles in the plant, the funds will be used to modernize production, develop new products, as well as developments in microelectronics. Partnership with Rosatom will allow Kraftway to obtain an anchor customer in the market of equipment for subjects of critical information infrastructure, according to the industry, but the development of production in the current conditions looks like a difficult task.

On December 22, Rosatom closed a deal to purchase a stake in the Russian manufacturer of electronics and computer equipment (laptops, computers, data storage systems) JSC Kraftway Corporation PLC (Kraftway), a source familiar with the progress of the negotiations told Kommersant. He clarified that “one of the structures of the state corporation” entered into the capital of Kraftway, without specifying its name. The general director and owner of the company, Alexey Kravtsov, retained 50%. Kommersant’s interlocutor estimated the transaction amount at 3.5–5 billion rubles.

A Kommersant source close to Kraftway claims that the share of the Rosatom structure, which entered the capital, is “higher than blocking, but less control” and such parameters will allow the vendor to coordinate policy with the state corporation, “but maintain commercial independence.”

A Kommersant source at Rosatom confirmed that the state corporation and Kraftway on December 22 “joined efforts on issues related to the production of trusted software and hardware systems for critical information infrastructure.” Representatives of Rosatom and Alexey Kravtsov declined to comment officially.

The state corporation intends to allocate another 2–3 billion rubles in 2024. for the development of Kraftway, says one of Kommersant’s interlocutors. According to him, the funds will be used to modernize the current production capacity of the enterprise, carry out research and development work.

“The company will master the production of new products, including software and hardware systems that work with Russian database management systems. In the future, we are talking about releasing analogues of Oracle Exadata,” the Kommersant source clarified, adding that part of the funds will be spent on developments in the field of microelectronics.

Kommersant’s interlocutor, close to Kraftway, explained that we are talking about developing a line of microcontrollers for production at the facilities of one of the plant’s partners: “We won’t get into the processor segment, there are enough developers there without us.”

Kommersant reported at the beginning of the year that NPO Critical Information Systems (NPO KIS, a Rosatom structure) is showing interest in purchasing Kraftway. NPO KIS itself was created only in October 2022 in pursuance of the presidential decree “On measures to ensure technological independence and security of the critical information infrastructure of the Russian Federation.”

The decree envisaged the creation and organization of a research and production association specializing in the development, production, technical support and service maintenance of trusted software and hardware systems for critical information infrastructure – this category includes banks, telecom companies, energy sector enterprises, etc. ( see “Kommersant” dated January 31).

The head of the Basis consortium, Arseny Brykin, believes that the deal will allow Kraftway to form a strategic partnership with a major customer: “The company will receive not only guaranteed demand for its products, but also the prospects of entering the critical information infrastructure market.”

At the same time, solving the problem of expanding the product line and modernizing production, according to the expert, will not be easy: “Yes, Kraftway will receive investments, but they still need to be wisely managed. Go through the R&D stage, receive the necessary technological equipment in a timely manner, and set up production along with its logistics support.”

Nikita Korolev, Alexey Zhabin