Airbus, Leonardo and Thales have signed a Memorandum of Understanding (“MoU”) aimed at combining their respective space activities into a new company.
By joining forces, Airbus, Leonardo and Thales aim to strengthen Europe’s strategic autonomy in space, a major sector that underpins critical infrastructure and services related to telecommunications, global navigation, earth observation, science, exploration and national security. This new company also intends to serve as the trusted partner for developing and implementing national sovereign space programmes.
This new company will pool, build and develop a comprehensive portfolio of complementary technologies and end-to-end solutions, from space infrastructure to services (excluding space launchers). It will accelerate innovation in this strategic market, in order to create a unified, integrated and resilient European space player, with the critical mass to compete globally and grow on the export markets.
This new player will be able to foster innovation, combine and strengthen investments in future space products and services, building on the complementary assets and world-class expertise of all three companies. The combination is expected to generate mid triple digit million euro of total annual synergies on operating income five years after closing. Associated costs to generate those synergies are expected to be in line with industry benchmark.
The project is expected to unlock incremental revenues, leveraging an expanded portfolio of end-to-end products and services leading to a more competitive offering, and greater global commercial reach. The combined capabilities also pave the way for even more innovative new programmes to enlarge the new company’s market positioning. Further operational synergies in, among others, engineering, manufacturing and project management, are anticipated to drive long-term efficiency and value creation. Upon conclusion of the transaction, this new company will encompass the following contributions:
- Airbus will contribute with its Space Systems and Space Digital businesses, coming from Airbus Defence and Space.
- Leonardo will contribute with its Space Division, including its shares in Telespazio and Thales Alenia Space.
- Thales will mainly contribute with its shares in Thales Alenia Space, Telespazio, and Thales SESO.
The combined entity will employ around 25,000 people across Europe. With an annual turnover of about 6.5bn€ (end of 2024, pro-forma) and an order backlog representing more than three years of projected sales, this new company will form a robust, innovative and competitive entity worldwide.
Ownership of the new company will be shared among the parent companies, with Airbus, Leonardo and Thales owning respectively 35%, 32.5% and 32.5% stakes. It will operate under joint control, with a balanced governance structure among shareholders.
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23 October 2025
