Safran Completes Acquisition of AI Specialist Preligens.

Safran has finalized the acquisition of Preligens, a French company specializing in artificial intelligence (AI) for defense applications. This acquisition, valued at 220 million euros, positions Safran to further enhance its capabilities in AI, particularly in areas such as military surveillance, space communication, and civil aeronautics. The deal, announced on September 2, 2024, follows months of negotiations and reflects Safran's commitment to expanding its technological portfolio through strategic acquisitions.
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While Preligens has primarily focused on military applications, the company is expected to diversify under Safran’s ownership, developing AI solutions for Industry 4.0 applications. (Picture source: Preligens)

Founded in 2016, Preligens quickly gained attention from the French military, specifically the Directorate of Military Intelligence (DRM), for its advanced AI algorithms capable of automatically detecting military equipment and identifying unusual movements on sites of interest using satellite imagery. Supported by the Definvest fund—established by the French Ministry of the Armed Forces in partnership with Bpifrance—Preligens secured a framework contract from the Directorate General of Armaments (DGA) valued at up to 240 million euros under the TORNADE program. This program was aimed at providing AI-driven optical and radar processing for the benefit of the DRM, the Special Operations Command (COS), and the Cyber Defense Command (COMCYBER).

Despite its early successes, Preligens faced challenges earlier this year when key contracts related to radar and optical imagery were not renewed by the Ministry of the Armed Forces, impacting nearly half of the company’s revenue. In response, Preligens sought a buyer to ensure its continued growth and development. After an initial interest from Thales, which later withdrew, Safran entered exclusive negotiations in June 2024 to acquire 100% of Preligens’ capital. This acquisition was finalized over the summer, culminating in the announcement made this September.

With the acquisition now complete, Preligens will be rebranded as Safran.AI, reflecting its integration into Safran’s Electronics & Defense division. This move underscores Safran’s strategy to bolster its expertise in AI, leveraging Preligens’ advanced solutions to accelerate the development of AI technologies across its products and services. The acquisition also aligns with Safran’s broader goal of enhancing its international presence, particularly in the U.S. market, where AI applications in defense are rapidly expanding.

While Preligens has primarily focused on military applications, the company is expected to diversify under Safran’s ownership, developing AI solutions for Industry 4.0 applications. According to Safran, automated image analysis powered by AI could assist inspectors in identifying anomalies in critical components using digital imaging, thereby enhancing quality control processes in various industries.

Jean-Yves Courtois, CEO of Preligens, expressed optimism about the acquisition, stating that joining Safran marks a new phase in the company’s development. He highlighted the synergies between the two companies, which are expected to drive the development of new AI product lines and accelerate international expansion. This, Courtois noted, is positive news for both the company’s operations and its employees.

Safran’s acquisition of Preligens is part of a broader trend in the defense industry, where major players are increasingly investing in AI to enhance their technological edge. As Safran.AI, the former Preligens is set to become a core component of Safran’s efforts to integrate AI across its defense, space, and civil aeronautics divisions. The strategic acquisition underscores the growing importance of AI in processing large volumes of data quickly and accurately, a capability that is becoming essential in modern defense operations.

With the completion of this acquisition, Safran is well-positioned to advance its AI capabilities, providing the French defense industry with cutting-edge technologies that meet the demands of modern warfare. The integration of Preligens into Safran’s broader operations is expected to yield significant advancements in AI, reinforcing Safran’s position as a leading player in the global defense industry.