Simulation & Training: Does Thales take over from RUAG?

Thales enters into exclusive negotiations to acquire the Simulation & Training division of RUAG. The core topics are:

• This acquisition project aims to strengthen the connection between Thales and the Swiss Army and complement Thales' entrepreneurial presence in the market for land-based simulations and trainings, as well as expand Thales' presence in Europe and the United Arab Emirates (UAE).
• With the integration of RUAG International's Simulation & Training division - as part of the Group's digital strategy - Thales accelerates the development of environmentally friendly training solutions for armed forces in line with Thales' ESG action plan to create a safer, more environmentally friendly, and more inclusive world.
• This merger is expected to provide the market with advanced solutions for training and simulations that combine the expertise of one of Europe's largest providers of live and virtual training and simulation technologies.

Thales' Training & Simulation division is responsible for designing and implementing training measures for armed forces, as well as civilian and governmental helicopter operators worldwide. As an industry partner, Thales T&S also offers joint development of large-scale systems for defense programs. The division employs 1,000 people in France, the UK, Germany, and Australia, and has joint ventures and training sites in the USA, the Middle East, and Europe.

RUAG International's Simulation & Training division develops complex, sophisticated training technologies for land forces. It has a solid track record in training services, contracts with long durations, decades of investment in products and technologies, and enjoys a very good reputation in the market. RUAG S&T is a partner in long-term contracts, such as ARMASUISSE and other key customers. The division has over 500 employees in four countries and is expected to generate revenue of CHF 100 million (EUR 86 million) in 2021.
RUAG S&T's presence and that of Thales T&S complement each other excellently, as RUAG S&T has locations in Switzerland, France, Germany, and the UAE. This strengthens Thales' international presence in these markets. Together, RUAG International and Thales aim for sustainable success, with Thales contributing its experience in virtual training and RUAG International bringing its experience in live training. The combination of these two business areas is expected to accelerate the introduction of the next generation of hybrid solutions and integrate the three dimensions of live training, virtual training, and constructive training. The new division will also enhance Thales' capacity to support the digitalization of land forces' training.

Through the initial collaborative experiences within the framework of the CERBERE project - the breakthrough training program of the French armed forces - the new combined division could offer customers around the world a portfolio of powerful products. There are also plans to expand the offering with additional services to enhance the operational readiness of armed forces and develop new operational concepts. This will ensure the continuity of training services for ARMASUISSE and the operational readiness of the Swiss Army.

The employee representatives of Thales and RUAG International will be consulted in the context of the project.

The completion of the transaction is expected in 2022, subject to the necessary approvals by the regulatory authorities.

THALES on the Internet: www.thalesgroup.com

RUAG on the Internet: www.ruag.com