French defence and technology group Thales said on Wednesday it started talks to buy French supplier of airborne avionics systems Cobham Aerospace Communications for $1.1 billion.

Thales said that with the acquisition it aims to pursue its strategy to strengthen its Avionics portfolio.

"Thales will establish a game changer in the very attractive and fast-growing communications and connectivity market," Executive Vice-President Avionics, Yannick Assouad, said in a statement.

Cobham Aerospace Communications is a leading supplier of advanced cockpit communication systems and it is expected to generate about $200 million in revenues in 2023, Thales said.

The transaction is expected to generate medium-term double-digit growth per annum for Thales and to have accretive impact on its margins.

It will be earnings per share accretive as of the first year post closing and will bring about run-rate revenue synergies of about $40 million per annum, the company said.

Thales said it will finance this acquisition through its available cash resources.

Closing of the transaction is due during the first half of 2024, the company said.

(Reporting by Michal Aleksandrowicz in Gdansk; Editing by Jacqueline Wong)