Thales

Thales is one of the market participants in the aviation, space and defense industries, as well as in the markets for security systems and transport systems. The company employs 68,000 employees in 50 countries, of which 25,000 are engineers and developers.

Performance indicators

In 2008, Thales made a profit of €12.7 billion.

History

2023

Sale of Moldova radar for air defense Ground Master 200

In September 2023, amid the conflict in Ukraine, Moldovan Defense Minister Nosaty noted the country's cooperation with the French company THALES: at a press conference, they announced that the Moldovan side had bought the Ground Master 200 radar for air defense, which they plan to deliver by the end of the year. THALES will also provide training for Moldovan specialists on the use of radar.

At the same time, the parties did not disclose the amount of the transaction, but back in April it was about buying radar for 14.5 million euros.

Purchase of American information security developer Imperva for $3.6 billion

On July 25, 2023, the French aerospace technology developer Thales announced the conclusion of an agreement to acquire the American company Imperva, specializing in information security software development. The deal amounted to $3.6 billion. Under the terms of the contract, Thales will buy back a 100% stake in Imperva from the investment firm Thomas Bravo. Read more here.

Cobham purchase for $1.1 billion

On July 12, 2023, the French company Thales Group, a developer of technological solutions for the aerospace and defense sectors, announced the acquisition of Cobham Aerospace Communications, a manufacturer of communication systems for aviation. The transaction amount is approximately $1.1 billion. Read more here.

Supplies of raw materials for the production of shells for Ukraine

At the beginning of 2023, the authorities of France and Australia agreed on the joint supply of 155-mm artillery shells for the Armed Forces of Ukraine. Ammunition is compatible with French, German and American artillery installations.

The production of shells was implemented within the framework of the existing agreement between the two countries.

A branch of the French company Thales in Australia supplies raw materials, which are then processed in France. At the Eurenco plant, gunpowder is produced from it, which the state-owned Nexter company uses to create artillery ammunition.

The first batch should leave for Ukraine at the end of the first quarter of 2023.

2022

A ransomware virus has entered the IT infrastructure. Hackers demand ransom

On November 11, 2022, hackers attacked the American branch of the largest French corporation Thales, which specializes in military electronics and cyber defense. The data is published on the platform of the hacker group LockBit.

Thales was added to the list of victims of the group on October 31, 2022. A gang of cyber giants threatened to leak data to the network on November 7, 2022, if Thales did not pay the ransom. Thales reported that a group engaged in extortion and the creation of ransomware viruses announced on the dark web its plans to release the data. The company's management added that it has not yet received any direct buyout notifications from hackers.

The IT infrastructure of the defense giant Thales has been infiltrated by a ransomware virus. Hackers demand ransom

Thales has launched an internal investigation and informed the national information systems security agency (ANSSI), but has not yet filed a police report, a company spokesman said on November 10, 2022. The hackers did not provide evidence that they obtained any Thales data, the company spokesman added.

{{quote 'The Company works closely with its partner and provides all necessary technical support and resources to minimize any potential impact of the incident on customers and stakeholders. Thales repeats that at the moment this does not affect the group's activities, "said Thales information security specialist Joseph Gatt. }} Foreign media quickly attributed the hacker attack from LockBit to Russia - there are suggestions that this is a kind of revenge for not allowing some Russian athletes and imposing sanctions against Russia in connection with the special military operation of the Russian Federation in Ukraine.^[1]

Curtailing business in Russia amid conflict in Ukraine

In June 2022, it became known that the French company Thales, which ensured the protection of payment transactions and the verification of PIN codes on the cards of the largest Russian banks, curtailed its work in the country. This was told by a company representative to Forbes. Previously, the group served 20 Russian banks.

2021: Sale of Hitachi's rail division for €1.66 billion

On August 4, 2021, Thales announced the sale of the railway business to the Japanese company Hitachi. The transaction value is €1.66 billion.

The sale comes as the French company seeks to streamline its increased operations and reassure investors of its core focus on manufacturing high-tech equipment for the defense and aerospace industries.

Hitachi buys Thales rail division for €1.66 billion

With this major strategic move, we will be able to focus on developing three of our high-tech long-term growth businesses, each capable of consistently generating double-digit profits, "said Patrick Kane, Chairman of the Board and CEO of Thales, in a statement.

These three areas are aerospace, defense and security, and digital identification and security.

Hitachi said the acquisition of the Thales business should help the Hitachi Rail division reach revenues of ¥1 trillion ($9.2 billion) by 2026. The transaction amount of €1.66 billion corresponds to the value of the enterprise, including debt, of the Thales division called Ground Transportation Systems (GTS).

Thales said in a statement that the price reflected a 13.8-fold ratio of 12-month earnings before interest and tax (EBIT) and that the deal would close in late 2022 or early 2023.

The rail division, which Thales sold to Hitachi, is developing to offer train management systems and fare services as well as rail signalling systems. Reuters notes that the volume of this business is small compared to competitors. The sale comes at a time of consolidation in the industry, with independent players merging with larger industrial groups, the agency adds.^[2]

2017: Buying Gemalto

On December 17, 2017, Thales announced the purchase of digital security technology developer Gemalto for €4.8 billion. This amount turned out to be about 500 million euros of the one offered by the IT service provider Atos. Read more here.

2009: Restructuring and allocation of three regions and seven divisions

Following a meeting of the Thales Management Board held on December 10, 2009, Luke Vigneron, Chairman of the Management Board and CEO of the company, met with members of the Thales Production Board (Comité Central d'Entreprise) to inform them of changes in the organizational structure of the Group.

To simplify the mechanisms of Thales, promote cross-sectoral synergies, improve the effectiveness of economic measures and improve productivity, the transformation of the organizational structure provides for the division into three large regions and seven divisions.

To implement this project, Luke Vigneron appointed a new executive committee with the following composition:

• Alex Dorrian - Executive Vice President, Region A [1], CEO of Thales UK (Thales UK)
• Blaise Jaeger - Senior Vice President, Region B
• Yves Barou - Senior Vice President, Staff and Communications
• Patrice Durand - Senior Vice President, Finance and Administration
• Marco Erman - Senior Vice President, Research and Technology
• Patric Fournié - Senior Vice President, Operational Transformation
• Jean-Loup Picard - Senior Vice President, Strategy

The following committee members are responsible for the project to create new divisions:

• Alex Cresswell - Senior Vice President, Land Defense Technology
• Jean-Pierre Forestrier - Senior Vice President, Transport Systems
• Jean-Loic Gal (Jean- Loïc Galle) - Senior Vice President, Air and Air Operations
• Michel Mathieu - Senior Vice President, Aviation Electronics
• Pierre-Eric Pommellet - Senior Vice President, Combat Defense Systems
• Pascale Sourisse - Senior Vice President, C4I Defense and Security Systems
• Reynald Seznec - Senior Vice President, Space Systems

Notes