French-German KNDS Acquires Texelis Defense to Boost Future Combat Vehicle Innovations.

German-French Defense company KNDS and Texelis from France officially announced on January 29, 2025, the signing of a Memorandum of Understanding (MOU) concerning the proposed acquisition by KNDS France of Texelis' Defense business. This strategic move marks a significant milestone in European land defense mobility, combining KNDS’s expertise in armored vehicle manufacturing with Texelis’ advanced mobility solutions.
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The SERVAL 4x4 armored vehicle, developed under the French Army’s SCORPION program, showcases Texelis' expertise in advanced mobility solutions in partnership with KNDS France. (Picture source: Texelis)

As part of this agreement, French Company Texelis will be divided into two distinct entities: Texelis Défense, which will be acquired by KNDS France, and Texelis Transport, which will remain under the control of Texelis’ management team and investors. The two parties have entered into exclusive negotiations, and employee representatives are scheduled for consultation in the coming days. The finalization of this transaction is expected by the end of 2025, pending regulatory approvals and the fulfillment of standard conditions for such acquisitions.

Texelis, headquartered in Limoges, France, has established itself as a key player in land mobility solutions, specializing in the design and production of cutting-edge mobility architectures for armored vehicles. The company has played a crucial role in the modernization of the French Army’s vehicle fleet, delivering advanced mobility components for a range of platforms, including 4x4, 6x6, and 8x8 vehicles. Notably, Texelis partnered with KNDS France for the SERVAL 4x4 vehicle under the French Army’s SCORPION program, demonstrating its expertise in developing and manufacturing complete mobility solutions. The company is also at the forefront of hybrid vehicle technology and energy-efficient mobility solutions, key areas of innovation for the future of military operations.

In 2023, Texelis employed 350 people and generated approximately €110 million in revenue. The company’s existing branch at the KNDS France facility in Roanne further solidifies its collaboration with KNDS on armored vehicle programs, ensuring continuity in joint development efforts.

The acquisition of Texelis' Defense business by KNDS France has the potential to significantly strengthen KNDS’s position in the European defense market, particularly in land vehicle mobility solutions. By integrating Texelis' expertise, KNDS will gain full control over mobility architectures, reducing reliance on external suppliers and streamlining the development of next-generation armored vehicles. This move aligns with global defense trends, as military forces seek more agile, fuel-efficient, and highly mobile combat platforms.

Texelis’ leadership in hybrid propulsion and energy management could accelerate KNDS’s efforts to develop more sustainable and efficient combat vehicles. As military forces worldwide prioritize sustainability and operational efficiency, KNDS’s acquisition of Texelis Défense could enable the creation of a new generation of armored platforms, featuring hybrid powertrains, improved energy management, and advanced digitalization.

This acquisition marks a pivotal moment for KNDS, providing the company with the opportunity to develop the next generation of combat vehicles by leveraging the combined expertise of KNDS and Texelis. The fusion of these two companies could lead to groundbreaking innovations in hybrid-powered armored vehicles, enhanced mobility solutions, and digitalized battlefield technologies. As KNDS strengthens its position as a leader in European land defense, this acquisition may set the stage for a new era of high-mobility, high-efficiency combat platforms, redefining the future of armored warfare.

With the transaction set to conclude by late 2025, the defense industry will be closely watching how KNDS and Texelis join forces to reshape the landscape of military vehicle mobility and innovation.