New European space player aims to unite and enhance capabilities by combining the three respective activities in satellite and space systems manufacturing and space services.
Airbus (stock exchange symbol: AIR), Leonardo (Borsa Italiana: LDO) and Thales (Euronext Paris: HO) have signed a Memorandum of Understanding (“MoU”) aimed at combining their respective space activities into a new company.
By joining forces, Airbus, Leonardo and Thales aim to strengthen Europe’s strategic autonomy in space, a major sector that underpins critical infrastructure and services related to telecommunications, global navigation, earth observation, science, exploration and national security. This new company also intends to serve as the trusted partner for developing and implementing national sovereign space programmes.
This new company will pool, build and develop a comprehensive portfolio of complementary technologies and end-to-end solutions, from space infrastructure to services (excluding space launchers). It will accelerate innovation in this strategic market, in order to create a unified, integrated and resilient European space player, with the critical mass to compete globally and grow on the export markets.
This new player will be able to foster innovation, combine and strengthen investments in future space products and services, building on the complementary assets and world-class expertise of all three companies. The combination is expected to generate mid triple digit million euro of total annual synergies on operating income five years after closing. Associated costs to generate those synergies are expected to be in line with industry benchmark.
