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Airbus: aerospace giant should beware geeks bearing gifts

Diversifications into cyber security are tricky for defence investors to assess

The Ukraine war has revived the threat of conventional conflicts for developed nations. That has boosted the defence sector, in which Airbus participates. But the interest the Toulouse-based group is reportedly taking in the cyber security and big data arm of Atos is incongruous. Cyber warfare is a different activity to the physical sort.

The French software group is the kind of vendor that acquirers like: distressed. But there is a further incongruity in talk of Airbus buying a minority stake in the Evidian division of Atos. It would hardly be material to the aerospace group.

Defence and space activity makes up just over a quarter of Airbus’s top line, though its separate helicopters unit has defence exposure, too. Within defence and space, the software businesses — within connected intelligence — make up an even smaller part.

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