The French aerospace and defence M&A market posted a historic second quarter in 2026. With 54 recorded transactions, volume far exceeded the long-term Q2 average (14.2 deals) and rose by eight deals compared with Q1. Driven by Eurosatory and multi-domain defence consolidation, the period also shows premium valuations for sovereignty technology assets.
Record volume and controlled internationalisation
Q2 2026 totals 54 transactions, nearly four times the long-term average. While 67% remain domestic, this share is down slightly from the previous quarter (70%), signalling a selective opening to foreign capital.
Several entries illustrate this attractiveness: Saab invests in Comand AI (€32m Series A), while Toulouse-based Rossi Aero comes under Canadian group Meloche's control. France retains a solid domestic core while welcoming targeted strategic capital.
Defence, the undisputed driver of the quarter
Defence accounts for 41% of transactions, ahead of aeronautics (31%). The multi-domain segment is particularly dense: capital restructuring at Nexteam, acquisitions and divestments at Mecachrome, and structural moves by prime contractors.
Airbus and Safran buy Tikehau's stake in Aubert & Duval. Airbus acquires Quarkslab, Safran.AI takes over Kayros' military intelligence division, MBDA buys Centum T&S, and Sopra Steria is in exclusive negotiations for Daher's Manufacturing Engineering business. Naval (10%), space, land and cyber (6% each) complete a diversified but defence-dominated picture.
Major deals and rising valuations
Total quarterly transaction value exceeds €10bn, driven by two large deals: the German state's 40% entry into KNDS (€6–7.2bn), a prelude to a future IPO, and Safran's exclusive negotiations to acquire Exail Technologies (€2.2bn).
Other deals enrich the picture: KNDS' sale of c. 5.8% of its Renk stake (€262m), ST Group's IPO, and Latour Capital's Émergence Défense fund's first acquisition of Cerbair. Minority stakes represent 24% of transactions. Several deals were completed at multiples above 12x, well above usual sector standards.
Industrials and funds reshape the ownership landscape
Share acquisitions dominate (56%), followed by asset deals (13%), LBOs (11%), market transactions (9%) and capital increases (7%).
Industrials are very active on the buy-side (34 transactions). Founders appear massively as sellers (31 sell-side transactions), while funds show an unusually high share of divestments (22%). This movement marks the start of a gradual fund disengagement, with assets taken over by other funds or industrials.
Outlook: durable consolidation and exit windows
The Q2 2026 picture depicts a sector in transition. The combination of record volume, heavy defence concentration, structural state-backed deals and premium valuations signals a durable upward trend.
Ongoing transactions (Safran/Exail, potential KNDS IPO) and the emergence of specialised defence funds (Émergence Défense, etc.) suggest the momentum will continue into H2. For French technology SMEs and mid-caps, this context offers both external growth opportunities and attractive exit windows, in an environment where technological sovereignty and European defence capabilities remain strategic priorities.
Source: Financière Cincinnatus — Bilan M&A Aérospatiale & Défense France, Q2 2026.
Key takeaway
With 54 transactions and over €10bn exchanged, Q2 2026 confirms that consolidation of the French defence industrial base is underway. For SMEs and technology mid-caps, preparation quality and sovereign clarity will determine real exit value.
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