Thomson and Thales announced a strategic partnership as well as the potential acquisition by Thomson of Thales Broadcast & Multimedia (TBM).

Thomson and Thales will develop a partnership relationship specifically in the domain of high-value video content management and distribution solutions for in-flight entertainment, security, and defense applications, leveraging their respective skills and expertise in these domains.

Under this strategic partnership, Thomson would also acquire Thales Broadcast & Multimedia which provides platforms for IPTV services (TV services over Internet Protocol), video-on-demand, Mobile TV, and Digital TV and radio broadcasting systems and equipment. By combining the TBM activities with Thomson's existing Systems & Equipment offerings, Thomson will be well positioned to offer end-to-end products and services, in particular in the fast-growing IPTV, Mobile TV and Digital terrestrial transmission (DTT) markets, with solutions encompassing every component of the video chain.

"The strategic agreement with Thales creates a powerful partnership for addressing the rapidly increasing demand across various markets for multidistribution access of video content," said Frank Dangeard, Chairman and CEO of Thomson. "Furthermore, acquiring TBM will strengthen Thomson's position in the high-growth IPTV and Mobile TV markets. It will reinforce our relationships with telecom operators and broadcasters and create value through tightly integrated, optimized and pre-packaged system solutions."

"We are delighted by this partnership with Thomson. Thomson's strategic priority and core business are in line with TBM's leading edge technology and commercial potential. For Thales, divesting from these activities further optimizes its portfolio of businesses and strengthens its investment capability," said Denis Ranque, Chairman and CEO of the Thales group.

The acquisition is subject to finalisation.