Aerospace firm Safran is in exclusive talks to buy French defense artificial-intelligence startup Preligens, whose algorithms are used to analyze satellite data for the French and U.S. militaries, for an enterprise value of €220 million, or $236 million.
Safran said the potential deal is a “unique opportunity” to add cutting-edge AI to its product offering. The transaction is subject to the usual regulatory approvals, and is expected to close in the third quarter of 2024, the Paris-based company said in a statement on Monday
“The proposed acquisition of Preligens will boost the adoption of AI within the group,” Safran CEO Olivier Andriès said in the statement. “It will represent a step-change for our defense and space technology businesses.”
The acquisition would ensure French control of a technology that the country’s Armed Forces Ministry has identified as crucial in the competition between global powers. The French government owns 11.2% of Safran and 18.1% of voting rights. Other bidders for Preligens included Sweden’s Hexagon and the Leonardo-Thales joint venture Telespazio, Les Echos reported in April.
The Preligens AI has been trained specifically for detecting military equipment such as armored vehicles, aircraft and ships on satellite or drone images, and France’s military intelligence uses the technology to monitor activity at strategic sites. The startup also works with NATO, the U.S., the U.K. and the EU, and last month announced a new contract with an Asia-Pacific customer for AI analysis of high volumes of government satellite images.
