THOMSON-CSF HAS agreed "in principle" to buy an initial 25% stake in Italian defence-electronics company Elettronica. A final agreement is due in the next few weeks.
The French company says that the investment will take the form of a capital increase in Elettronica, which, under the agreement, would increase to 32% within a year and 49% in three years.
Elettronica's core business is in electronic-warfare systems, and the company is involved in programmes for the Eurocopter NH90 transport helicopter, the Eurofighter EF2000 and the Horizon frigate.
The agreement brings together the activities of Thomson-CSF Radar & Counter Measures and the communications and electronic-warfare activities of Thomson-CSF Communications. The combined total annual revenue of the two enterprises will be more than Fr2.4 billion ($480 million).
Thomson-CSF is now pursuing a major programme of "Europeanisation", tying up a series of co-operation deals in 1995, including Spain's Indra (in defence electronics) and France's BM Industries (optronics).
Source: Flight International
