French defence group Thales in exclusive talks to sell IT business to GFI Informatique

French aerospace and defence group Thales yesterday said that it was in exclusive talks to sell its business solutions IT business to French group GFI Informatique.

Thales Services' business solutions business, which has annual revenues of around €75 million, manages large scale IT systems deployments in institutions such Paris hospitals and the national library. The unit lies outside the scope of its core defence usinesses.
 
Paris-based Thales, which changed its name from Thomson-CSF after its £1,300-million acquisition in late 2000 of UK defence electronics group Racal Electronics Plc, is the world's11th largest defence contractor.

With the French government being its single largest stockholder, the company had revenues of €13.12 billion last year.

GFI Informatique is a leading European value-added services and software company occupying a strategic position differentiating between operators world-scale and niche players.

With a profile of multi-specialist, the group offers to its customers a unique combination of proximity, industry organisation and industrial quality solutions.

The Euronext Paris, and NYSE Euronex listed company reported a turnover of €658 million last year. It has subsidiaries in Belgium, Luxembourg, Switzerland, Spain, Portugal, Morocco and Canada.

GFI Informatique said in a statement that the, ''merger with GFI would first establish a long term partnership with Thales, which is a client of Business Solutions, and strengthen the presence of all major industrial groups with bank or in France. On the other hand, it would provide ability to "delivery" of significant size in the French market and offer a range of sector expertise strengthened, particularly in the Product Life cycle Management.''

Reuters yesterday reported, citing sources that bankers estimate the deal to be worth around €400 million ($552 million), and the deal is likely to be announced tomorrow.