Lockheed Martin agrees Ultra Maritime acquisition as subsea defence demand rises

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Lockheed Martin Ultra Maritime deal

Highlights

Lockheed Martin acquires Ultra Maritime from Advent, gaining advanced submarine and torpedo detection tech and beating rivals like Thales amid rising subsea defence demand.
Ultra Maritime's revenue is projected to grow from $494 million in 2023 to about $784 million in 2026, after $170 million in investments boosted 17% annual revenue growth.
Thales announces €3.9 billion Exail Technologies acquisition at €134 per share, sending Exail shares up over 50% and highlighting strong sector dealmaking momentum.

Acquisition expands undersea warfare portfolio

As first reported by the Financial Times, the deal announced on Monday gives Lockheed Martin control of Ultra Maritime's technology for detecting submarines and torpedoes, strengthening its position in sensitive subsea warfare systems. The Maryland-based group, one of the U.S.'s largest aerospace and defence companies with a market capitalisation of about $125 billion, beats rivals including Thales in the sale process, according to people familiar with the matter.

Ultra Maritime is part of Advent's Cobham Ultra business, which the private equity firm assembled through its 2019 acquisition of Cobham for 4 billion pounds and its purchase of Ultra Electronics two years later for 2.6 billion pounds. Advent says it has invested $170 million in product development and manufacturing over the past three years, during which revenue rises 17% annually.

Financial Times previously reported that Ultra Maritime's revenue is on track to increase to about $784 million in 2026 from $494 million in 2023. Advent managing partner Shonnel Malani says the firm identified a business with mission-critical technology in 2022 that had been underinvested, and adds that Advent has changed that over the past four years.

Lockheed executive Stephanie Hill says the acquisition accelerates the company's push to deliver advanced undersea and anti-submarine warfare capabilities to U.S. and allied customers worldwide. Ultra Maritime also struck a partnership last year with Anduril Industries to develop next-generation anti-submarine systems combining autonomous subsea vehicles with maritime sensors.

Sector dealmaking gathers pace

Lockheed Martin's agreement comes as defence companies race to secure maritime and autonomous warfare capabilities amid stronger investor and industry interest in the sector. On the same day, Thales says it plans to acquire Paris-listed Exail Technologies, a specialist in maritime robotics and navigation.

Thales secures a deal for Exail that values the company at about 3.9 billion euros, or 134 euros a share. The announcement covering the Gorgé family's 35.5% stake sends Exail shares up more than 50% on Monday.

Thales chief executive Patrice Caine says the acquisition will strengthen the group's high-technology industrial base and innovation for defence and civil customers while reinforcing Europe's technological sovereignty. Advisers on the Lockheed deal include Citi and law firms Hogan Lovells and Cadwalader, while JPMorgan, Guggenheim and Weil advise Cobham Ultra.

In our earlier report on Solstice Advanced Materials’ $14.5 billion agreement to acquire Element Solutions, we explained how the cash-and-stock deal is designed to broaden Solstice’s footprint in semiconductor manufacturing, electronics and industrial applications. We also noted the transaction would deepen its capabilities in areas such as electronics packaging and thermal management, reflecting rising investment tied to AI infrastructure demand.

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