Lockheed Martin has agreed to acquire Ultra Maritime, a British undersea warfare technology firm, for $3.45 billion, expanding the American defense company’s portfolio amid rising global demand for advanced military equipment. The transaction was announced in early July 2026 and marks a significant move to strengthen Lockheed Martin’s capabilities in underwater defense systems.

Ultra Maritime was established in 2022 through the merger of two prominent UK defense companies, Cobham and Ultra Electronics, orchestrated by the US private equity firm Advent International. Advent acquired Cobham in 2019 for £4 billion and subsequently purchased Ultra Electronics in 2022 for £2.6 billion. Both groups are considered critical to national security, and their acquisitions required government approval.

Specializing in underwater military technologies such as sonobuoys, torpedo nose arrays, and recently awarded acoustic decoys for the US Navy, Ultra Maritime operates factories and offices across London, Buckinghamshire, and Dorset. Its products are used by the US Navy and the Royal Navy, reflecting its strategic importance to allied maritime defense.

Under the agreement, Ultra Maritime will be incorporated into Lockheed Martin’s Rotary and Mission Systems (RMS) division, which last year generated $17.3 billion in revenue and employed 35,000 workers worldwide, including around 1,700 in the United Kingdom across approximately 20 sites.

Stephanie Hill, president of Lockheed’s RMS division, emphasized the significance of undersea dominance in modern warfare. She stated that the acquisition would enhance their ability to deliver advanced undersea and anti-submarine warfare solutions to both the United States and its allies.

From Advent’s perspective, Shonnel Malani, managing partner at the private equity firm, highlighted the progress made under their ownership. She noted that Ultra Maritime has become a more innovative and reliable partner for allied navies, citing investments totaling about £127 million in the past three years to accelerate production and develop next-generation autonomous technologies.

Financially, Ultra Maritime reported revenues of approximately £370 million in 2023 and is projected to reach around £587 million in 2026. The broader defense industry has seen increased activity recently, driven by conflicts in Ukraine and the Middle East and pressure from the former US administration for NATO countries to raise defense spending. Analysts view Lockheed Martin’s acquisition of Ultra Maritime as part of a wider strategic effort by defense contractors to broaden their product offerings in response to growing global security challenges.