France’s Thales Group on Wednesday said it has agreed to acquire Cobham Aerospace Communications from Britain’s Cobham for $1.1 billion in a deal that strengthens its avionics portfolio.
The transaction is expected to close in the first half of 2024 subject to regulatory approvals.
Cobham Aerospace Communications (AeroComms) serves the commercial and military aerospace markets with defense representing about 30 percent of the estimated $200 million in sales the business expects to generate in 2023.
AeroComms portfolio includes audio and radio management systems, aircraft L band satellite communications systems, antennas for communications, safety and navigation, internal and external lighting, aircraft clocks, and human-machine interface solutions.
Thales said the deal will better position it for opportunities in connected cockpits, provide cyber-secure air-to-ground services, meet future demands for autonomy, and provide original equipment manufacturers with integrated solutions.
“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,” Yannick Assouad, Thales executive vice president for avionics, said in a statement. “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.”
AeroComms has offices and facilities in France, South Africa, the U.S., Canada, and Denmark. The business has about 690 employees, of which about 190 are engineers.
Thales expects the deal will be accretive to earnings in the first year of ownership. The company also expects AeroComms to deliver annual double-digit growth in the medium-term.
Cobham is a portfolio company of the Boston-based private equity firm Advent International.