CLS works with clients in 158 countries. How would you summarize forty years of international expansion?
Right from the start, CLS had a global mindset. For political reasons, we were founded simultaneously in France and the US, as part of the collaboration between the French Space Agency (CNES) and the US around the Argos system. So, from day one, we had a foot on both sides of the Atlantic; it was in our DNA.
Our core business-monitoring what is happening on the planet, tracking fishing fleets in the Pacific, and observing the oceans-quickly led us to work in Japan, Indonesia, and Brazil. For about twenty years, we grew organically, opening subsidiaries as we won government contracts. When you outfit a country’s national fishing fleet, it’s only natural to hire locally. Starting in 2007, we added external growth (M&A) to the mix: Brazil, Italy, Spain, Canada, South Africa, China, and the UAE. We also doubled down in countries where we already had a footprint, like the US, through a series of consecutive acquisitions.
What success story makes you the proudest, starting with organic growth?
Indonesia. We have been there since 2004, following a contract to equip the national fishing fleet with a monitoring system. Today, our subsidiary employs 30 to 40 people, and it continues to grow and diversify. What always surprises people is seeing competing French companies try to break into that market and fail, while we thrive. That is because we rely on local teams-almost exclusively Indonesian staff-led by a French woman running the entity. That cultural blend is what makes the difference.
And in terms of external growth (M&A)?
Brazil, without a doubt. We made two consecutive acquisitions there, the first in 2012 and the second in 2023. Brazil is a bit like Indonesia: a dynamic economy, but with massive administrative and cultural hurdles. We successfully established ourselves there while retaining the existing teams. In fact, one of the founders of the first company we acquired is now the Director of our Energy Business Unit. CLS Brazil has become a true “mini CLS”-almost all our business lines are represented there, with 50 to 60 employees and €10 million in revenue. Before our latest acquisition in Australia, it was our third-largest subsidiary in terms of revenue.
Have there been any failed attempts?
Yes, and we own up to them. We tried to launch CLS Morocco organically, but it didn’t work out, so we pivoted to a distributor model. CLS China followed the same pattern: we tried organic growth, shut it down, and eventually acquired a local company. And then there was an operation in the Netherlands focused on logistics vehicle tracking, launched in 2010 through a joint venture. We held on for ten years, but market prices in that sector plummeted by 75% in just a few years. It became hyper-competitive, with no real way to differentiate using our space-based tools, which are our core DNA. So, we closed it. These are tough milestones, but we’ve managed to bounce back every time.
You have completed seventeen acquisitions. What is your recipe for a successful integration?
Upstream, we pay very close attention to the corporate culture of the companies we buy. We have primarily acquired teams with a mindset similar to ours: a focus on service quality, and a commitment to sustainability and the environment. We look for a shared set of values, regardless of geographic or cultural differences.
Post-acquisition, we take a customized approach. We don’t just barge in and say, “Here are our processes, implement them.” Only two things are non-negotiable. First, financial reporting: we consolidate the numbers, we are under an LBO, so everyone must use the same tool. Second, cybersecurity, because the smaller companies we acquire often lack robust protection. For everything else-sales, HR, tech-we leave them real autonomy. We tell them: you have access to our legal department and our HR if you need them, but nothing is shoved down your throat on day one. An acquired company is a working machine; the last thing we want to do is break it.
Your business requires you to work with public institutions across highly diverse countries. How do you manage that dimension?
Our strength is knowing when to leverage the weight of a global group and when to play local. In Brazil, it’s Brazilians speaking to the authorities. It is CLS Brazil, driven by its Brazilian teams. Sales is also about sharing a language, a culture, and a time zone. When it’s Chinese New Year or the Brazilian Carnival, a local team naturally tells you: “Don’t expect anything this week.” Without a local footprint, you hit a glass ceiling very quickly. We experienced this in the Middle East; our revenue flatlined at €2 million for years. Ever since we set up shop locally, business has been taking off.
We also benefit from the French Space Agency (CNES) network. Their embassy representatives help us identify the right decision-makers in ministries and agencies. It is a true form of economic diplomacy.
What are the major international challenges for CLS over the next ten years?
We view them more as opportunities. Our markets are driven by four global megatrends: the safety of people and infrastructure, climate change resilience, the energy transition, and natural resource management (mineral resources, living resources, fisheries, agriculture). These are all global trends, not local ones. Our markets aren’t regional. For us, going global isn’t a choice; it’s an absolute necessity.
Regarding the disruption of global trade agreements, we are less exposed than companies manufacturing tangible goods, as we are highly service- and digital-oriented. And budgets shifting toward defense and security don’t necessarily put us at a disadvantage; we know how to pivot across these different sectors.
In terms of future growth, two verticals are of particular interest: smart and connected agriculture (livestock tracking, deforestation monitoring, crop management), and everything related to urban development, risk management, and infrastructure. These are global issues where we have perfect legitimacy.
Which internationalization model do you favor: organic growth, M&A, or commercial partnerships?
You shouldn’t be dogmatic. These are tools, not ends in themselves. The key is to have a strategy: what do we want to achieve, where, and why? Only then do you choose the vehicle.
M&A is faster, but it is more complex and capital-intensive. With organic growth, you control your pace and your investments. Commercial partnerships are often where you start when you aren’t established yet and lack the resources for a full subsidiary. Today, we still have over 200 commercial partners in Africa. We don’t have a physical footprint there, but we have representatives in many countries. Once the potential revenue threshold justifies a physical structure, we open a subsidiary. That is how we analyze the equation.
What three pieces of advice would you give an SME executive looking to accelerate globally?
Number one: Build your support system. Don’t do it alone. Whether internally or with external partners, you must allocate real, dedicated resources to international expansion, otherwise it will remain a theoretical goal.
Number two: Stay focused. Have a crystal-clear strategy: which country, why, and what is the expected outcome? If you haven’t defined your objective, you will lose your way very quickly.
Number three: Be bold. There is often a fear of local red tape and unknown processes. But they aren’t necessarily more complicated than what we deal with in France. If other companies have succeeded, there is no reason it won’t work for you, provided you’ve done proper market intelligence. Don’t hold yourself back out of fear of the unknown.
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