Thales, a French defense and technology group, is in negotiations to buy Cobham Aerospace Communications for $1.1 billion, strengthening its avionics portfolio and expanding its geographical footprint.
“With the acquisition of Cobham Aerospace Communications and its highly skilled team of aerospace communications experts, and combined with our own critical avionics experts, Thales will establish a game changer in the very attractive and fast-growing communications and connectivity market to the benefit of a more sustainable aerospace future,” said Yannick Assouad, Thales executive vice president of Avionics.
Cobham Aerospace Communications provides advanced safety cockpit communication systems. It has 690 employees including 190 engineers, and operates in France, South Africa, the U.S., Canada and Denmark.
The company is expected to generate $200 million in revenue in 2023.
“By guaranteeing a cyber-secured, live connection between the cockpit and air traffic control, aircraft will be able to fly optimized trajectories in real time, significantly reducing fuel consumption and, consequently, CO2 emissions in the next two to three years,” Assouad added.
The acquisition will improve Thales’ global position in safety cockpit communications and incorporate newly developed cutting-edge products into its portfolio. It’s expected to generate medium-term double-digit growth per annum.
“This acquisition reflects the successful transformation of Cobham Aerospace Communications in recent years under Advent’s ownership. Our sizeable investment in R&D over the last years has further consolidated our position as a leading player in our markets, with a series of new contracts won already this year,” said Nicolas Bonleux, Cobham Aerospace Communications CEO.
By integrating Cobham Aerospace Communications’ safety cockpit communication systems portfolio, Thales can make the shift toward connected cockpits in hopes of addressing the aeronautical market’s secured connectivity needs by the end of the decade.
Thales will be able to provide safer, more affordable and sustainable solutions with real-time and cyber-secured air-to-ground services; increased operations’ efficiency; better pilot assistance; and reduced original equipment manufacturers’ installation burdens.
Plus, Thales said the acquisition will improve its Avionics’ sales growth and EBIT margin profile. The transaction is expected to close during the first half of 2024.
”We are proud to join Thales, which will provide Cobham Aerospace Communications with a platform to build on recent success, continue the development of several cutting-edge avionics products, and ensure the business’ future growth,” Bonleux added.
“The aircraft connectivity and communication markets will undergo a true revolution in the coming years, which will unlock potential for unique avionics products like ours. Our combined offering with Thales Avionics will enable us to further accelerate our contribution to safer, greener, more comfortable and more efficient air travel.”