Lockheed Martin has agreed to acquire Ultra Maritime, a naval technology group, from private equity firm Advent for approximately $3.45 billion. The deal underlines the increasing strategic importance that defence companies and governments place on maritime security, particularly the protection of undersea energy and communications infrastructure. Sources familiar with the matter indicated that Lockheed Martin faced competition from French defence contractor Thales, which ultimately did not succeed in securing the deal.
Ultra Maritime is part of Advent’s Cobham Ultra business, formed through Advent’s previous acquisitions of UK defence company Cobham in 2019 for £4 billion and Ultra Electronics in 2021 for £2.6 billion. Advent has invested around $170 million in Ultra Maritime’s product development and manufacturing over the last three years. The division’s revenue has grown annually by approximately 17 percent during this period, with projections indicating a jump from $494 million in 2023 to about $784 million in 2024.
Advent managing partner Shonnel Malani noted that when the firm invested in Ultra Maritime in 2022, the business had critical technology for undersea defence but had been underfunded. “Over the past four years, we have changed that,” Malani said. In recent developments, Ultra Maritime formed a partnership with defence technology company Anduril Industries to jointly develop next-generation antisubmarine warfare solutions.
Lockheed Martin emphasized the strategic significance of the acquisition. Stephanie Hill, president of Lockheed Martin Rotary and Mission Systems, said the move would accelerate the company’s ability to provide advanced undersea and antisubmarine capabilities to the United States and allied nations worldwide.
Meanwhile, Thales announced a separate transaction involving the acquisition of a 35.5 percent stake in maritime robotics and navigation firm Exail Technologies from the Gorfe family, valued at €3.9 billion. Thales also launched a tender offer for the remainder of the Paris-listed company. This transaction marks an expansion into demining operations, a sector that has gained increased attention amid recent Iranian activities in the Strait of Hormuz. Prior to the Thales deal, jet engine maker Safran had been in exclusive negotiations to purchase the Exail stake.
Thales framed the acquisition as a strategic measure to enhance Europe’s technological sovereignty and reduce dependency on the United States. The company projected that the addition of Exail would contribute positively to its revenue and operating income by 2032.
Investment banks and law firms advising the parties included Citi and Hogan Lovells Cadwalader for Lockheed Martin, as well as JPMorgan, Guggenheim, and Weil for Cobham Ultra.