Thales' deal to buy Exail Technologies strengthens its naval warfare and high-precision navigation offering, Stifel analyst Thomas Mordelle writes. The French aerospace and defense group is the natural home for Exail's surface and underwater warfare units, he adds. The combined entity will be more exposed to growing naval budgets around the world, he adds. Thales shares rise 1.5% to 241.70 euros and Exail rises 2.9% to 126 euros.(adam.whittaker@wsj.com)