Safran SA entered exclusive negotiations to acquire defense specialist Exail Technologies for approximately €2.2 billion ($2.5 billion).

The offer price is set at €128.50 per share.

Safran plans to purchase the Gorgé family’s controlling stake before launching a mandatory public takeover for remaining shares.

Exail specializes in maritime systems, including sea drones for mine-countermeasures, robotics, and navigation.

The acquisition aligns with Safran’s strategy to expand its defense electronics capabilities.

Exail shares surged nearly 20% before trading was halted following the announcement.