Kongsberg Defence & Aerospace has signed an agreement to acquire the American company Zone 5 Technologies LLC, which develops and produces cruise and air defence missiles. The purchase price has not been disclosed.
According to Kongsberg Defence & Aerospace, the acquisition will include 90 percent of the shares in Zone 5, while the company's management will remain as minority owners. After completion, Zone 5 will continue its operations as an independent subsidiary. The deal is subject to regulatory approvals and customary closing conditions, as stated in the company's press release.
Zone 5 Technologies is based in San Luis Obispo, California, founded in 2011, and has approximately 250 employees. According to Kongsberg, Zone 5 has participated in several US defence programmes, including the US Air Force Extended Range Attack Munition (ERAM), Family of Affordable Mass Missiles (FAMM), as well as projects under the US Defence Innovation Unit. In September, the US Department of State approved a potential sale of 3,350 cruise missiles to Ukraine.
– The acquisition of Zone 5 marks an important step for Kongsberg, says Geir Håøy, CEO of Kongsberg, in the press release.
In the same press release, Kongsberg states that Zone 5's product portfolio includes missiles intended for cost-effective production in larger volumes.
– Zone 5 fits well with Kongsberg's ambitions to broaden our missile portfolio, says Eirik Lie, head of Kongsberg Defence & Aerospace, in the press release.