Greek-French drone deal in the works

Greek defense industry leader Theon is on the verge of acquiring the French high-tech company HGH, according to a recent report published by the French economic newspaper Les Echos. This acquisition would allow Theon to integrate HGH’s technology for detecting unmanned aerial vehicles (drones) into its existing product range, capitalizing on the rapidly growing market for such systems. The move underscores Theon's ongoing efforts to strengthen its position in France, following its recent announcement of forming a joint venture with Safran and acquiring the manufacturer Merio. The goal of the group, as stated in the report, is to establish itself as a European leader in the field of optics.

According to the report, Theon has identified HGH's product portfolio as highly complementary to its own and has entered exclusive negotiations with the American investment firm Carlyle, which acquired HGH in 2018. At the time, this acquisition caused disappointment within the circles of the French defense industry. The proposed transaction, based on an evaluation of 300 million euros, would represent the largest acquisition in the history of the Greek group. HGH develops a rare and highly sought-after technology in this specific area—thermal cameras capable of detecting drones at very long distances, up to several kilometers depending on the size of the target.

Despite the presence of competitive solutions in the market, HGH’s artificial intelligence software relies on a unique database containing 15 years of visual data, enabling efficient scanning of airspace. This particular product will enable Theon to accelerate its activities in the anti-drone defense sector. Additionally, the Greek group has been developing optical “platform” systems over the past few years, which can be integrated into vehicles such as armored fighting vehicles or naval ships. These systems have attracted increasing interest from military forces, particularly in Europe, as the large European defense funding program SAFE is gradually being implemented, supporting the procurement of drone countermeasures from European manufacturers.

The acquisition of HGH further solidifies Theon's status as the largest investor of Greek interests in France, regardless of the industry sector, with total investments amounting to approximately 600 million euros. In a previous statement to Les Echos, Christian Hatjiminas, CEO of the group, emphasized that this year marks the year of France for Theon, highlighting significant investments made by the Greeks, who are now not just customers of the French but also partners.

The potential acquisition of HGH represents a major step forward for Theon, aligning with broader strategic goals aimed at enhancing Greece's technological capabilities in the defense sector. By integrating HGH’s advanced detection technologies, Theon aims to bolster its offerings in the increasingly critical domain of drone countermeasures. This acquisition could also contribute to strengthening Franco-Greek industrial ties, fostering collaboration in high-tech defense innovation.

The process, however, still requires approval from the French government and input from employee representatives before finalization. As the defense landscape continues to evolve, driven by emerging threats and technological advancements, Theon’s move signals a commitment to staying at the forefront of European defense manufacturing. With the support of international investors like Carlyle, the acquisition could mark a pivotal moment in Theon’s expansion strategy, reinforcing its role as a key player in both the Greek and European defense industries.

The acquisition of HGH is expected to catalyze further growth and innovation for Theon, potentially leading to new partnerships and contracts with European defense agencies and militaries. It also reflects a broader trend of cross-border collaborations in the defense sector, where companies seek to combine strengths to meet complex security challenges. As the situation unfolds, stakeholders will be watching closely to see how this acquisition impacts the dynamics of the European defense market and the future trajectory of Theon as a global defense entity.