Sagem (Safran group) and MTU Aero Engines announced the signature of an agreement to form a 50/50 joint venture, AES Aerospace Embedded Solutions GmbH to provide safety-critical software and hardware for military and civil aviation applications.

The agreement was signed by Philippe Petitcolin, Chairman and CEO of Sagem (Safran group), and Egon Behle, CEO of MTU Aero Engines, in a ceremony also attended by Jean-Paul Herteman, Chairman and CEO of the Safran group.

This signature follows the Memorandum of Agreement announced in December 2011 by Sagem and MTU Aero Engines.

“The grouping of competences is a determining step to jointly open new markets. Therefore, the new joint venture will offer additional positive perspectives for our businesses. Together with Sagem we will focus on accessing a multitude of future development programs within the global aviation and defense industry,” said Egon Behle, CEO of MTU Aero Engines.

AES will deploy some 200 engineers, primarily from MTU Aero Engines but also some from Safran. Its main products will include control systems for engines such as the TP400-D6 turboprop powering the Airbus A400M military transport, as well as other safety-critical hardware and software solutions such as controls for landing gear, braking, monitoring and information systems. AES will consolidate its skills and expertise by calling on the Safran Electronics division of Sagem, which will provide its full support and access to its large portfolio of onboard electronics.

Philippe Petitcolin, CEO of Sagem, said: “For MTU and Sagem, the creation of AES marks a significant step forward in the consolidation of European centers of excellence in critical aerospace and defense technologies. Along with our partner, we now have a competitive, innovative offering of products and services that allows us to better meet the requirements of new European programs”.

The new company will be staffed by experienced professionals in software & hardware development, program management, quality and certification. Leveraging this experience and expertise, AES will support both Safran's and MTU's programs, as well as working for other industries requiring safety-critical hardware and software.

AES will be headquartered in Munich, Germany on the MTU campus.

Christophe Bruneau of Sagem will be the Chief Executive Officer and Thomas Faehr of MTU Aero Engines will be the Chief Technical Officer.

Pending regulatory approval, AES should start operations by the end of the year.