Germany to upgrade military data encryption for up to €1.7 billion

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)