Airbus, Leonardo, and Thales have signed a memorandum of understanding to merge their space activities into a new joint company, aiming to bolster Europe’s strategic autonomy in the critical space sector. This move is set to create a unified European space champion with a strong commercial and technological footprint, spanning telecommunications, navigation, earth observation, science, exploration, and national security.
The new entity will combine complementary technologies and end-to-end space solutions—excluding launchers—enhancing innovation and global competitiveness. It is expected to generate annual synergies in the mid triple-digit million euro range within five years, driven by streamlined operations in engineering, manufacturing, and project management. The merger will also unlock new revenue streams through an expanded portfolio and increased export potential.
Contributions to the new company will come from Airbus’s Space Systems and Space Digital units, Leonardo’s Space Division (including Telespazio and Thales Alenia Space shares), and Thales’s holdings in Thales Alenia Space, Telespazio, and Thales SESO. The combined company will employ around 25,000 people across Europe, with pro-forma annual revenues near €6.5 billion at the end of 2024 and an order backlog covering more than three years of sales.
Ownership will be split with Airbus holding 35 percent, and Leonardo and Thales each owning 32.5 percent. The company aims to accelerate Europe’s leadership in space by fostering innovation through shared R&D, achieving economies of scale, and enhancing operational efficiency. It seeks to strengthen the European space ecosystem, create new career opportunities, and ensure Europe remains a major global space player with sovereign capabilities.
Airbus CEO Guillaume Faury, Leonardo CEO Roberto Cingolani, and Thales CEO Patrice Caine described the initiative as a pivotal milestone that aligns with European governments’ ambitions to secure industrial and technological independence in space. The transaction, subject to regulatory approvals and employee consultations, is expected to be completed by 2027.
