Safran has entered into exclusive discussions to acquire Preligens, a leader in artificial intelligence for aerospace and defense.

The French company, which has a base in Gloucester, is looking to acquire 100% of Preligens, for an enterprise value of 220 million euros.

Founded in 2016, Preligens provides field-proven AI analytics solutions for high-end imagery, full motion video and acoustic signals.

The company develops complex algorithms and software to analyse and automatically detect and identify objects of military interest, notably using commercial and government satellite images.

Preligens' technology provides enhanced situational awareness and accelerated decision-making to its clients. Preligens' unique "AI Factory" allows the industrial development and integration of best-in-class AI algorithms, trained on massive amounts of data from multiple sensors with end-to-end security and traceability.

Based in France, Preligens had sales of 28 million euros in 2023. The company employs approximately 220 employees, including 140 engineers in research & development.

This potential acquisition represents a unique opportunity for Safran to add state-of-the-art AI capabilities to its product offering and to accelerate its digital transformation roadmap in particular for Manufacturing 4.0. Through its global presence, Safran will also be able to reinforce the development of Preligens internationally, in particular in the US market.

Olivier Andriès, Safran chief executive officer, said: "The proposed acquisition of Preligens will boost the adoption of AI within the group, thus optimising our agility and efficiency. With multiple applications, it will represent a step-change for our defense 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."

Jean-Yves Courtois, Preligens chief executive officer, said: "In eight years, Preligens has become a recognised leader in its field. We are thrilled at the potential to boost our business in the USA, to define jointly innovative AI-powered applications, and to pioneer Industry 4.0 AI technologies. The proposed acquisition will open a new chapter in Preligens' success story, with more opportunities for our employees to learn, grow and excel."

The transaction will be subject to the usual regulatory approvals, as well as the information and consultation of Preligens' employee representatives. The closing is expected in the third quarter of 2024.