France’s Thales to acquire Cobham Aerospace Communications for $1.1 billion By Reuters

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<span>© Reuters. FILE PHOTO: The logo of Thales Group is seen during a visit at the Thales radar factory in Limours, France, February 1, 2023. REUTERS/Gonzalo Fuentes</span><br />
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<p>(Reuters) -French defence and technology group <span itemscope="" itemtype="http://schema.org/Corporation"><span itemprop="name"> Thales </span></span> (EPA:) said on Wednesday it started talks to buy French supplier Cobham Aerospace Communications for $1.1 billion.</p>
<p>Thales shares were up around 1% in early Paris trading following the news.</p>
<p>Thales said that with the acquisition it aims to strengthen its portfolio in avionics &#8211; the complex electronic systems used on aircraft.</p>
<p>&#8220;Thales will establish a game changer in the very attractive and fast-growing communications and connectivity market,&#8221; Executive Vice-President Avionics, Yannick Assouad, said in a statement.</p>
<p>Cobham Aerospace Communications is a leading supplier of advanced cockpit communication systems and it is expected to generate about $200 million in revenue in 2023, Thales said.</p>
<p>&#8220;We see this acquisition as a positive for Thales, with a reasonable acquisition price,&#8221; Jefferies analysts said.</p>
<p>The transaction is expected to generate medium-term double-digit growth per annum for Thales and to have accretive impact on its margins.</p>
<p>It will be earnings per share accretive as of the first year post closing and bring about run-rate revenue synergies of about $40 million per annum, the company said.</p>
<p>Thales said it will finance the acquisition through available cash resources.</p>
<p>The transaction is expected to close in the first half of 2024, the company said.</p>
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<br /><a href="https://www.investing.com/news/stock-market-news/frances-thales-to-acquire-cobham-aerospace-communications-for-11-billion-3123826">Source link </a></p><p>The post <a href="https://forextraderhub.com/frances-thales-to-acquire-cobham-aerospace-communications-for-1-1-billion-by-reuters.html">France’s Thales to acquire Cobham Aerospace Communications for $1.1 billion By Reuters</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>