THEON strikes deal to acquire 80% of French defence firm MERIO
What's the deal? THEON International, the Netherlands-listed defence optics company, has entered into a binding exclusivity agreement to acquire 80% of MERIO SAS, a French maker of gyrostabilised gimbal and turret systems used in drones, counter-drone platforms, and unmanned ground vehicles. The seller is MERIO's sole shareholder, RPL Développement.
The deal will be financed through a mix of debt and internally generated cash, at what THEON calls an "accretive EBIT multiple." MERIO is expected to generate above €15M in revenue in 2026, with projected EBIT above €3.5M.
MERIO's management team and key employees will stay on. The transaction still requires long-form documentation, regulatory approvals, and other customary closing conditions.
Why now? THEON has set an ambitious target of €1B in revenue by 2029 and is actively diversifying beyond its core night-vision and electro-optical portfolio. MERIO gives it a foothold in the fast-growing drones and counter-drone market — segments that have surged in strategic importance since the war in Ukraine reshaped defence procurement priorities across Europe.
The deal also plants THEON's flag in France, one of Europe's largest defence markets, with the stated aim of becoming "a key French export player." MERIO's ITAR-free technology and predominantly European supply chain make it an attractive asset at a time when European defence sovereignty is a political priority.
What could go wrong? Regulatory approvals remain a hurdle — France is notoriously protective of its defence-industrial base, and foreign acquisitions in the sector receive close scrutiny. Integration risks also loom: MERIO is a 40-person engineering outfit, and preserving its agility inside a larger group is never guaranteed.
The deal's financial details are thin. No enterprise value has been disclosed, and THEON's description of an "accretive EBIT multiple" leaves investors guessing at the actual price tag.
The signal: This acquisition fits a broader pattern of consolidation in European defence tech. Larger platforms are snapping up specialist firms — particularly those with AI-enabled, unmanned-systems expertise — to build integrated product suites. THEON founder and chief executive officer Christian Hadjiminas framed the deal as a step toward "platform-based" revenue, signalling the company's shift from components to complete systems. As European governments ramp defence spending, expect more mid-market deals like this one to reshape the sector's landscape.
Read more: globenewswire.com
