Safran, primarily a manufacturer of aircraft parts, has made a move within France’s defence industry to acquire Preligens – a leading geospatial artificial intelligence (AI) start-up established in 2016.
Exclusive discussions have launched with both parties stipulating an enterprise valuation worth €220m ($236m). The Parisian company accrued $30m in 2023 sales alone, and employs 220 employees, including 140 engineers in research and development.
The transaction will be subject to the usual regulatory approvals, as well as the information and consultation of Preligens’ employee representatives. The deal is due to close in Q3 2024.
Preligens provides AI-powered analytics of imagery, full-motion video and acoustic signals. Its complex algorithms and software analyse and automatically detect and identify objects of military interest, particularly through the use of commercial and government satellite images.
Critically, the start-up says it trains its algorithms using enormous amounts of data from multiple sensors with end-to-end security and traceability.
Nearly two months ago, Preligens revealed that its AI analytics extend to even analysing Synthetic Aperture Radar (SAR) satellite images. Its latest algorithms build on the company’s electro-optical satellite imagery, thus expanding the range of data sources Preligens can analyse.
For Safran, this deal represents an opportunity to add these diverse AI capabilities to its product offering and to accelerate its digital transformation roadmap, particularly its ‘Manufacturing 4.0’ programme that will leverage a range of technologies to augment its industrial estate.
Safran CEO Olivier Andriès gave some insight into the group’s future plans for the soon-to-be subsidiary.
“With multiple applications, it will represent a step-change for our defence and space technology businesses and will also allow us to deploy AI-enabled digital inspection methods to support our focus on flight safety and quality”.
GlobalData forecasts, the total AI market, including platforms, services, and hardware, will be worth $908.7bn in 2030, having grown at a compound annual growth rate of 35.2% from $81.3bn in 2022.
According to the consultancy’s thematic scorecard ranking the top defence industry performers in 2023, Safran was already well-positioned in AI behind larger primes such as Airbus, BAE Systems and Boeing among others.
However, the new deal will augment the French group’s industrial capacity, rendering them a more formidable player in exploiting the rapidly emerging technology.
