Lockheed's Undersea Boost
Lockheed Martin Acquires Ultra Maritime for Undersea Warfare Expansion
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Key Points
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Stephanie C. Hill, president of Lockheed Martin Rotary and Mission Systems, said, "Undersea superiority belongs to those who move fastest and work together best" to justify Ultra Maritime's integration into RMS.
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Ultra Maritime's revenue is projected to grow from about $494 million in 2023 to roughly $784 million in 2026, highlighting the asset's significant growth potential in undersea warfare.
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The sale of Ultra Maritime was conducted as a competitive auction, a relatively rare path for a defense technology asset.
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Advent assembled the Cobham Ultra portfolio through two large transactions: the 2019 £4 billion take-private of Cobham and the 2021 £2.6 billion acquisition of Ultra Electronics.
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Ultra Maritime counts the U.S. Navy and the U.K. Royal Navy among its customers, highlighting the strategic fit for Lockheed's undersea capabilities.
Lockheed Martin has agreed to buy Ultra Maritime, a leading anti-submarine warfare company, for about $3.45 billion from private equity firm Advent, according to The Epoch Times and Defense Daily. The deal will fold Ultra Maritime's sonar systems, torpedo detectors, and unmanned underwater tools into Lockheed's Rotary and Mission Systems division.
The acquisition still needs regulator approval before it can close, Defense Daily reported. Ultra Maritime employs about 2,000 people across the U.S., U.K., Canada, and Australia, and counts the U.S. Navy and the U.K. Royal Navy among its customers.
Ultra Maritime's Fast-Growing Undersea Business Draws Lockheed In
Ultra Maritime is no small prize. Its revenue was about $494 million in 2023 and is projected to reach roughly $784 million by 2026, according to Tipp Insights. That's nearly 60% growth in three years, driven by rising global demand for anti-submarine warfare tools.
The company brings a strong product line to Lockheed. Key assets include the Sea Sleuth electronic warfare sensor, sonar buoys, towed arrays, and torpedo-detection systems. These tools are used on ships, submarines, and aircraft to find and track enemy submarines underwater.
Lockheed Bets Big on Undersea Warfare Dominance
Stephanie C. Hill, president of Lockheed's Rotary and Mission Systems division, made the company's goal clear. "Undersea superiority belongs to those who move fastest and work together best," she said. The deal puts Ultra Maritime's proven tech directly under that division.
Lockheed sees undersea warfare as a key growth area, according to Tipp Insights. Ongoing conflicts in Ukraine and the Middle East have pushed governments to spend more on advanced defense systems. The U.S. defense budget outlook for 2027 also remains strong, giving Lockheed a clear runway for growth.
Advent Built Cobham Ultra Through £6.6 Billion in Deals
Advent, the private equity firm selling Ultra Maritime, built the Cobham Ultra portfolio through two big moves. It took Cobham private in 2019 for £4 billion, then bought Ultra Electronics in 2021 for £2.6 billion, according to Market Screener. Ultra Maritime is one unit carved out of that combined portfolio.
The sale of Ultra Maritime was run as a competitive auction — a relatively rare approach for a defense technology asset, Tipp Insights noted. That auction process likely helped push the final price toward the $3.45 to $3.5 billion range that multiple outlets reported.
Defense Spending Boom Makes the Timing Right for Lockheed
Global defense budgets are rising fast. Conflicts in Ukraine and the Middle East have pushed allied nations to buy more advanced military tech. The U.S. defense budget for 2027 is expected to stay robust, according to The Daily Record. That environment makes a $3.45 billion undersea warfare bet look well-timed.
For Lockheed, the deal is about more than revenue. It deepens ties with the U.S. and U.K. navies, two of the world's most active buyers of undersea systems. Adding Ultra Maritime's tools to its existing portfolio gives Lockheed a stronger hand in one of defense's fastest-growing segments.
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