Lockheed Martin Corp has agreed to acquire naval defence company Ultra Maritime for US$3.45 billion (A$4.95 billion) to bolster its portfolio as global demand for military technology surges.
The aerospace and defence contractor said the acquisition would expand its maritime defence portfolio by adding Ultra Maritime’s expertise in sonar systems, acoustic sensing, radar technologies, torpedo defence and underwater surveillance.
This comes at a time when governments are increasing spending on maritime security and advanced military technology.
Under the deal Ultra Maritime becomes part of Lockheed Martin’s Rotary and Mission Systems business, which provides naval systems, sensors and advanced defence technologies to the United States and allied militaries.
“Undersea superiority belongs to those who move fastest and work together best,” Lockheed Martin Rotary and Mission Systems President Stephanie Hill said in a news release.
“By joining forces with Ultra, we’re accelerating our commitment to deliver the most advanced undersea and anti-submarine warfare capabilities to our U.S. and allied partners across the globe.”
The announcement was made by Ultra Maritime, which is owned by private equity firm Advent International’s portfolio company Cobham Ultra.
Advent acquired Ultra Maritime in 2022 and said it had invested about $170 million in product development, manufacturing capacity and technology upgrades to transform the business into a leading supplier of anti-submarine warfare systems.
Advent Managing Partner and Ultra Electronics Chair Shonnel Malani said Ultra Maritime had mission-critical technology and a vital role in protecting allied nations from undersea threats but had been underinvested and was not fully delivering for its customers when Advent first invested in it in 2022.
“Over the past four years, we have changed that,” he said.
Ultra Maritime President and Chief Executive Officer Carlo Zaffanella said Advent’s partnership and investment have been transformative for the business.
“I am excited to build on that momentum as Ultra Maritime enters our next chapter,” he said.
Lockheed Martin (NYSE: LMT) shares closed $7.91 (1.45%) down at $538.00 on Monday (Tuesday AEST), capitalising the company at $124 billion.
