Security Defense Business Review

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EXAIL - A new Global Technology Leader is born

Alain Establier

SDBR News: What is the objective of the alliance between ECA Group and iXblue ?

Dominique Giannoni*: The alliance between ECA Group and iXblue, under the same banner, makes Exail a major global player in the fields of robotics, maritime, navigation, aerospace, photonics, and space. All of this is possible thanks to a complete mastery of the entire value chain, from optical components to complete drone systems. At Exail, we will continue to create more and more innovative solutions to explore new territories, from the deep sea to outer space. Our ambition is to strengthen France's sovereignty through the mastery of cutting-edge technologies. We will work as an integrated group, and accordingly, we have presented an organizational plan to our employees.

SDBR News: Do you mean that joining forces came naturally ?

EXAIL

Dominique Giannoni: Yes, because we have been working together for years on similar developments. The entrepreneurs, who were at the head of ECA Group and iXblue, have developed their companies with a DNA of technological innovation, and have sought ways of differentiating their offer in order to compete internationally. This determination to be the best and to offer value to their customers brought the two companies together in the early 2000s. And in 2019, the Belgian-Netherlands mine countermeasures program won by Belgium Naval & Robotics gave us the opportunity to collaborate on several products and on this great program. Our technical teams have got to know each other and have seen the value of working closely together and integrating each other's products. So, there was a natural continuity that has led to where we are today with the launch of the Exail brand.

Fabien Napolitano**: I would add that we are in markets that are changing, as demonstrated by the Belgian-Netherlands contract we won with Naval Group, with whom we have very strong relationships that will certainly develop. We are a technology supplier that is unique in the world, and our geographical and cultural proximity to Naval Group may lead us to fight other major commercial battles together on the international market.

SDBR News: Does the name Exail have a particular meaning ?

Fabien Napolitano: First of all, we chose to have a new name for reasons of internal context. We still have two different legal structures, but we wanted to bring all the employees together within an integrated company, and what better way than with a new name? We wanted all the technologies, carried by our two entities, to become systems that would make a difference with our customers and show them that we had a much wider offer. The name Exail evokes both ECA Group and iXblue, with the notions of excellence and exploration of innovation that sets us apart from our very large competitors.   

SDBR News: How big is Exail today ?

Accelerometer

Fabien Napolitano: Today we have 1500 employees spread over 21 sites in France, mainly in technical activities, research, development, and production. 80% of our customers are outside France, including the major Belgian-Netherlands mine countermeasures contract won in 2019 by Belgium Naval & Robotics, the consortium of Naval Group and ECA Group. As Dominique Giannoni said, this contract was somewhat the source of the alliance between ECA Group and iXblue because, since iXblue equips almost all the underwater robots in the world, we are also involved in the mine countermeasures contract. This contract has given a new dimension to our collaboration on sonar, acoustic positioning, and navigation systems. We were able to extend our collaboration and therefore it was an additional motivating factor in the alliance with ECA Group.

SDBR News: Can you give us an update on the progress of the Belgian-Netherlands contract?

Dominique Giannoni: We are in the prototyping phase. The design part has been completed and some prototypes of the whole system are already at sea: the autonomous underwater drone, towed or remotely operated, surface drone, and aerial drone. At the same time, we are continuing to develop the system that will integrate all these drones. We are in the process of demonstrating how we can meet the requirements of the contract. We are delighted to learn that France, Belgium, and the Netherlands have agreed on "a cooperation to promote synergies and mutual benefits in national mine warfare capabilities"...

SDBR News: What other types of applications is iXblue developing in the Naval Defense field?

Fabien Napolitano: iXblue has a history of expertise as an equipment supplier in the Naval Defense field. I can tell you for example that iXblue is present in the sight of a firing system on a surface ship. In Bordeaux, we make quantum gravimeters that are currently sold for geophysical and volcanological applications, but which are part of an ONERA program for on-board quantum gravimeters of interest to the French Navy: the objective is to make more accurate gravimetry maps for use on submarines. In Brest, we are working on underwater acoustic positioning systems and on navigation systems for underwater drones.

SDBR News: ECA Group is known for its underwater drones, as well as land drones. What other applications do you produce for the naval defense market?

DRIX

Dominique Giannoni: In Couëron, near Nantes, we supply, for example, submarine steering and diving consoles and energy conversion systems for the Barracuda and the future SNLE 3G submarines. Today, Exail's inertial units can be found in AUVs, submarines, British aircraft carriers, the Defense and Intervention Frigate, the army's Caesar gun, and also in scientific and military satellites. So we can talk about almost anything with our export customers, including our 80 navy customers. The common factor in all these examples is technology.

SDBR News: What is the next step in your alliance as Exail ?

Dominique Giannoni: We have the same shareholder, Groupe Gorgé, and we distinguish between legal and operational structures as all companies do. ECA Group and iXblue are two legal subsidiaries of Groupe Gorgé and we are starting to operate as an integrated group. We are looking with our employees at the legal steps necessary to go further with legal integration, that would facilitate career paths, for example. Operationally, we are already running an integrated group, with an understanding of our clients under a single brand: Exail. But with activities within Exail (ECA, iXblue) that they can access directly and, conversely, separate activities that can access their customers directly. This does not prevent us coordinating with each other to promote synergies.

Fabien Napolitano: Our vision is really that of an integrated group because we consider that there are many technical, commercial, and customer synergies to be developed. At the same time, we are organizing ourselves in such a way as to preserve the agility that comes from our respective histories as SMEs. Agility is key for our teams and for our customers. We are in a growth strategy, so we must not waste time making decisions that are not necessary or that would slow down our agility. We are a technology company where people are very important. The women and men are important, because they constitute the value of the company, and they must feel good in it. This is what influences our strategy.

SDBR News: In your growth strategy, what is the next step ?

Dominique Giannoni: As was done within Groupe Gorgé and as iXblue has done in the past, we will seize opportunities that make sense. We have a lot of work to do at the moment, but we are always listening to possible opportunities that could be relevant, by expanding our portfolio or our geographical positioning, provided that these opportunities are compatible with our DNA. We have talked about positioning in the Naval sector, but we produce land robots, and we should not forget our positioning in the aerospace sector, where one out of every two aircraft is equipped with ECA distress beacons. So, our growth strategy can cross paths with companies with a strong technological emphasis, smaller than Exail, which are looking to develop by taking advantage of the possibilities of our group.

*Dominique Giannoni is the CEO of ECA Group - https://www.exail.com

**Fabien Napolitano is the CEO of iXblue - https://www.exail.com

To complete these topics (in French):

Photos credits: Exail