|Bid||N/A x N/A|
|Ask||N/A x N/A|
|Day's Range||102.65 - 103.65|
|52 Week Range||94.32 - 124.45|
|Beta (3Y Monthly)||0.57|
|PE Ratio (TTM)||22.43|
|Earnings Date||Sep 4, 2019|
|Forward Dividend & Yield||2.08 (2.02%)|
|1y Target Est||127.30|
(Bloomberg Opinion) -- Valuing companies isn’t rocket science – except when it is. Billionaire Richard Branson’s Virgin Galactic has attracted a major investor that will see the 15-year-old space-tourism venture beamed onto the New York Stock Exchange. Time to get the calculator out.The space race is an exciting financial theme. Sure, investors can already get some exposure by buying shares of Boeing Co. and Lockheed Martin Corp. in the U.S. or Airbus SE and Thales SA in Europe. But they’re not the same thing as the visionary ventures spearheaded by Branson and Tesla Inc. CEO Elon Musk or Amazon.com Inc. founder Jeff Bezos.Virgin Galactic wants to take tourists on a brief space flight using a craft launched from a carrier plane. Its assets comprise the shuttles, the associated manufacturing capability, the know-how of its 800 or so staff, and an order book of 600 customers. Plus, of course, the Virgin brand.It’s not hard to see why a major external partnership is happening now. Branson’s Virgin Group is, in essence, a venture capital firm. It starts new things and then brings in partners and exits as projects mature. Galactic has had a long gestation.The venture has needed about $1 billion of funding so far, mostly from Branson. Abu Dhabi’s Mubadala took a minority stake in 2010, but Virgin still owns roughly 75%. Branson had been talking with Saudi Arabia’s Public Investment Fund about a possible $1 billion investment in both Galactic and a spin-off satellite venture; he ceased discussions last year following the murder of journalist Jamal Khashoggi.Galactic is beginning to prove its viability. Virgin sent a crewed craft beyond the 50 miles altitude generally held to mark the boundary of space in December, and staged a zero-gravity flight in February.But more funds are needed. These will come through a cash-and-stock deal with Social Capital Hedosophia Holdings Corp., a U.S.-listed cash shell and brainchild of one-time Facebook Inc. executive Chamath Palihapitiya.The combination makes sense. Social Capital gets a unique investment. Branson and Mubadala get a partial exit, taking out $300 million in cash while keeping a 51% stake in the combination. Galactic will also get access to the remaining cash on Social Capital’s balance sheet – just less than $500 million after Palihapitiya injects another $100 million.That said, it looks like an inefficient way for Virgin to raise money. Galactic is obtaining funds indirectly through a listed vehicle that trades at a premium to the value of its own cash pile. The flip-side is that Branson gets an important external validation of his business.The implied enterprise value of the combination is $1.5 billion. That is 2.5 times Virgin Galactic’s estimate for its revenue in 2023 and 5.5 times expected Ebitda. A lot still needs to happen for revenue and profit to materialize. We will have to wait and see how reusable spacecraft depreciate to know what the real bottom line is.Pick your comparable peers as you wish. Tesla trades on seven times estimated 2023 Ebitda and Boeing eight times. Virgin Galactic certainly deserves a discount.It will take time for the company to establish a safety record – Virgin suspended taking deposits from passengers following a fatal test flight in 2014 – and the total addressable market may not, after all, be that big. UBS Group AG analysts estimate the annual space tourism market will be only worth $3 billion by 2030, the bigger space prize being long-haul flights. There won’t be many people willing to go through the extreme G-forces involved.But Virgin’s plan is moving forward. Now it would appear to have the money to finish the job.To contact the author of this story: Chris Hughes at email@example.comTo contact the editor responsible for this story: Edward Evans at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Italian aerospace and defence firm Leonardo SpA and France's Thales SA are considering the joint acquisition of a space business from U.S. firm Maxar Technologies Inc, Leonardo's CEO said on Tuesday. The sale of the business - dubbed MacDonald, Dettwiler and Associates (MDA) - could fetch more than $1 billion and help address concerns about Maxar's $3.2 billion debt pile, people familiar with the matter told Reuters last month. "We are considering that with our partner Thales," Leonardo CEO Alessandro Profumo said in a phone interview from Jakarta, where he is looking to boost sales of maritime patrol equipment and helicopters in Asia to help diversify revenue.
(Bloomberg) -- Using code rather than concrete, European companies are busy building walls to protect their data, and are being encouraged by local politicians concerned about threats to their sovereignty.France’s biggest supplier of drinking water is one example. Before switching to Google’s cloud-based office software, Veolia Environnement SA first hired cybersecurity company Atos SE to handle the encryption of its data before it reached the Alphabet Inc.-owned company’s servers.Geopolitical tensions and trade wars are making European politicians cautious about domestic champions ceding control of their data to technology suppliers from the U.S. or China, fearing that providers could deny access to critical information about customers or production, or serve as a venue for rogue agents.Agnes Pannier-Runacher, France’s deputy economy minister, said in an interview that businesses relinquishing control of their data was “a systemic risk” to the competitiveness and sovereignty of an economy.Firms are increasingly migrating their data into cloud-based ecosystems -- an industry Gartner estimates will be worth about $214 billion in 2019, and one dominated by American and Chinese giants such as Amazon.com.com, Microsoft Corp., and Alibaba Group Holding Ltd.Germany’s central bank also recently warned the region’s banking sector that the move to shifting data on the cloud will make the industry harder to monitor.“For many companies, data is a strategic question,” Pannier-Runacher said. “It’s okay to have certain data out of reach in a functioning multilateral system; it becomes problematic in a unilateral system where one side can put pressure and cut access.”Read More: Huawei Frightens Europe’s Data Protectors. America Does, TooUnder the Trump Administration’s Cloud Act (or the “Clarifying Lawful Overseas Use of Data Act”) that was signed last year, all U.S. cloud providers can be ordered to provide local authorities data stored on their servers no matter where that data is physically stored. A similar concept has been enshrined in Chinese law since 2017, in which information of citizens must be stored in-country and accessible on demand to the authorities.As a result, European encryption specialists like Atos and Thales have been touting their home-grown history as a unique selling point, when competing with U.S. rivals such as Salesforce.com Inc. Amazon and others. Smaller European-grown cloud providers like Gigas Hosting SA in Spain and OVH Groupe SAS in France – while still dwarfs compared to their U.S. rivals – have not been not shy in making the point that English isn’t their first languageRead More: If You’re to Beat Amazon in Spain, Maybe Start Speaking Spanish“Veolia wants to maintain control and sovereignty over its data, however secure cloud solutions may be,’’ said Pascal Dalla-Torre, the company’s cybersecurity officer. “We’re building a sanctuary, a secure space. It’s a solution to protect our sensitive data.’’Atos isn’t alone in tapping the rising demand for European encryption middlemen: Multi-billion-dollar European firms such as defense contractor Thales SA and German software giant SAP SE both sell security products that sit between a company’s data and its cloud provider. Societe Generale, France’s third-largest bank by market cap, said it’s using Netherlands-based Gemalto to secure its cloud-destined information.Atos says it has a pipeline of 1 billion euros ($1.1 billion) under negotiations for security contracts similar to the one it signed with Veolia.“European businesses want Google’s technology, but with the right protections -- that’s one of the most common demands we have from customers today,” Atos Chairman and Chief Executive Officer Thierry Breton said in an interview.Europe is not the only region looking to promote its local providers. Boosted in part by escalating U.S. tensions, Beijing-based database and cloud provider PingCAP is winning over local tech giants, startups and financial institutions to its enterprise software.U.S. companies yet to see any serious knock-on effect. Oracle Corp. Recently closed at a record high amid positive signs in its transition to cloud-based computing, while Salesforce has been busy inking $15.3 billion deals.“The pace of innovation of hyper-scalers is so high that European companies must use them to stay in the game,” Carla Arend, researcher IDC’s lead cloud analyst, said. "But the regulatory environment and global security risks are certainly part of the concerns that Europeans are taking into account.”\--With assistance from Fabio Benedetti-Valentini and Gregory Viscusi.To contact the reporters on this story: Marie Mawad in Paris at email@example.com;Helene Fouquet in Paris at firstname.lastname@example.orgTo contact the editors responsible for this story: Giles Turner at email@example.com, Nate LanxonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The U.S. Senate on Thursday voted to block the sale of billions of dollars in military sales to Saudi Arabia, the United Arab Emirates and other countries, rejecting President Donald Trump's decision to sidestep Congress' review of such deals by declaring an emergency over Iran. Trump has promised to veto the Senate action in order to proceed with the deals, worth some $8.1 billion. Senators would need 67 votes to override his veto, which looked unlikely after Thursday's votes.
The Canadian government's contracting arm is backing a proposed new satellite system that will use big data analytics to provide commercially available data about the Earth and its orbit amid growing concerns about the risks posed by space debris. Support from the Canadian Commercial Corporation (CCC) will allow Canadian startup NorthStar Earth and Space to negotiate initial service agreements with the United States, Britain and other countries, NorthStar CEO Stewart Bain said.
Swiss defence and aerospace company RUAG is planning around a $500 million acquisition spree to cash in on a boom in private U.S. space projects inspired by billionaire Elon Musk's SpaceX. RUAG, owned by the Swiss state, makes ammunition for the Swiss army as well as parts for satellites and airliners. Switzerland said in March it wanted to privatise RUAG, which has become a technology specialist in civil aviation and space since it was created 21 years ago.
U.S. President Donald Trump, declaring a national emergency because of tensions with Iran, swept aside objections from Congress on Friday to complete the sale of over $8 billion worth of weapons to Saudi Arabia, the United Arab Emirates and Jordan. The Trump administration informed congressional committees that it will go ahead with 22 military sales to the Saudis, United Arab Emirates and Jordan, infuriating lawmakers by circumventing a long-standing precedent for congressional review of major weapons sales.
Jacob Zuma's lawyers argued on Monday that the former South African president had been treated unfairly by prosecutors in his attempt to have revived corruption charges set aside because he is unpopular in the country at large. Zuma, who was in office from 2009-2018, has applied for a permanent stay of prosecution from 16 charges of fraud, racketeering and money laundering relating to a deal to buy 30 billion rand of European military hardware for South Africa's armed forces in the late 1990s. On the first day of the hearing, Zuma's lawyer, Advocate Muzi Sikhakhane, described the former president's treatment by the National Prosecuting Authority (NPA) as "mob justice" and said Zuma had been charged because the country does not like him.
The U.S. State Department has approved a possible $3 billion sale of Apache attack helicopters to Qatar, the Defense Security Cooperation Agency said on Thursday. The government of Qatar has asked to buy ...
Thales (Euronext Paris: HO) has today completed the acquisition of Gemalto (Euronext Amsterdam and Paris: GTO), creating a global leader in digital identity and security. With Gemalto, Thales will cover the entire critical decision chain in a digital world, from data generation via sensors to real-time decision support.
French aerospace and defense electronics group Thales said it had completed its previously announced 4.8 billion euros ($5.4 billion) takeover of chipmaker Gemalto, boosting Thales' presence in the booming security services market. Thales had to clear various regulatory hurdles before finally completing the deal, and the company reiterated that buying Gemalto would increase its overall revenues and lift its presence in Latin America, north America and Asia. "Together, we are creating a giant in digital identity and security with the capabilities to compete in the big leagues worldwide," said Thales Chairman and Chief Executive Patrice Caine in a statement on Tuesday.
Thales (Euronext Paris: HO) has today completed the acquisition of Gemalto (Euronext Amsterdam and Paris: GTO), creating a global leader in digital identity and security. With Gemalto, Thales will cover the entire critical decision chain in a digital world, from data generation via sensors, to real-time decision support.
Germany's unpredictable arms export policies and long wait times for export licenses threaten the future of big Franco-German projects to develop new tanks, combat jets and drones, France's ambassador to Germany said in an essay published on Monday. Anne-Marie Descotes said growing numbers of companies were developing "German-free" weapons with no German content to smooth the export process, a dangerous omen for Franco-German projects valued in the billions of euros.
The U.S. Justice Department said on Thursday it was requiring Thales SA to divest its general purpose hardware security module (GP HSM) business in order for Thales to proceed with its proposed acquisition of Gemalto NV. French defense electronics maker Thales and Netherlands-based chipmaker Gemalto are the world's leading providers of GP HSMs, which generate keys and encrypts data, and are significant direct competitors in the United States, the Justice Department said in a statement.
PARIS (Reuters) - French defence electronics group Thales forecast higher sales and profits for 2019 as it posted a rise in its full-year earnings. Thales' 2018 earnings before interest and tax (EBIT) ...
Saudi Arabia said on Monday it had signed agreements worth 204 billion riyals ($54.4 billion) and offered fresh incentives to attract capital as part of a 10-year programme that would help diversify the economy of the world's top oil exporter. The kingdom is offering investment opportunities in mining, industry, logistics and energy through its National Industrial Development and Logistics Program (NIDLP). "The programme will be an outstanding achievement within the economic diversification process led by your royal highness," Energy Minister Khalid al-Falih said at a day-long event where Prince Mohammed made a brief appearance.
May.17 -- Patrice Caine, chief executive officer at Thales, discusses protecting against the threat of drone attacks in Saudi Arabia and securing data privacy. He speaks with Bloomberg's Caroline Connan on "Bloomberg Surveillance."
Patrice Caine, CEO of Thales, discusses the French aerospace firm's earnings, European politics, and why he feels confident about the rest of 2019.
Marko Erman of Thales says artificial intelligence can be used to detect the weakening of various devices on aircraft, so that maintenance can be performed accordingly in order to to prevent failure.
Thales S. Teixeira, a professor at Harvard business school and author of 'Unlocking the Customer Value Chain', joins us with the details on how retail giants can compete with startup companies, and what is disrupting most markets.