Lockheed Martin Eyes $3.5B Bet on Underwater Warfare Technology
Synopsis
The proposed acquisition of Ultra Maritime would expand Lockheed Martin’s capabilities in naval defense, including sonar and anti-submarine technologies.
Lockheed Martin's Ultra Maritime deal is in the spotlight after the U.S. defence contractor became the top bidder to buy the company from private equity firm Advent International for a proposed US$3.5 billion.
But negotiations are ongoing and there are still several competing bidders, and an announcement may be as soon as the week starting July 7, sources familiar with the discussions said.
The proposed deal has garnered interest from both the U.S. and Australia. Under the AUKUS security pact, Australia intends to build its new Virginia-class submarines with combat systems supplied by Lockheed Martin Australia, which makes Ultra Maritime's anti-submarine technologies appropriate for Australia's planned undersea capability.
The deal, which, if finalized, will also be subject to a national security assessment in the U.S. and the U.K. Investors' interest in the possible acquisition and its terms of financing were reflected in a 1.4% drop in Lockheed Martin's stock during after-hours trading.
Enhancing the Undersea Defence Operations
Lockheed Martin's underwater warfare technologies portfolio would be expanded with the proposed Ultra Maritime deal. Ultra Maritime produces sonar systems, sonobuoys, acoustic sensors, and other equipment for detection, classification, and tracking submarines for the navies.
The company provides technologies to the Five Eyes intelligence alliance – the United States, United Kingdom, Australia, Canada and New Zealand. It has over 2000 staff in these countries and has roles supporting defense programs related to maritime surveillance and anti-submarine warfare.
Lockheed Martin, a Bethesda, MD-based company, is one of the world's leading aerospace and defence companies. It develops, produces, and maintains military aircraft and missile systems, helicopters, military satellites, radar, cyber capabilities and space products, mostly for the U.S. Department of Defense and allied nations.
It has four businesses, Aeronautics, Missiles and Fire Control, Rotary and Mission Systems and Space, and several other services include maintenance, training, software upgrades, and long-term program support.
Defence Spending Continues to Shape Industry Deals
In 2019, Cobham was acquired by Advent International and, following its takeover in 2022, Cobham Ultra was merged with Ultra Electronics. Since then, Advent has spent approximately $170 million on engineering and manufacturing capacity and product development.
Ultra Maritime anticipates generating US$494 million of revenue in 2023, rising to US$784 million in 2026, according to information shared with prospective buyers.
As defence firms ramp up their capabilities in naval and undersea systems, the proposed Lockheed Martin Ultra Maritime deal adds to the trend.
The Stockholm International Peace Research Institute (SIPRI) estimates global military spending at a record US$2.72 trillion in 2024, with the United States accounting for the highest level of spending, followed by China, Russia, Germany and India.
This has led to growing demand for maritime surveillance and submarine detection technologies both in the Indo-Pacific and in Europe, where investment has been increased.
Regulatory Review Remains Key
Lockheed Martin and Advent International have not commented on the reported talks. As Ultra Maritime's defence technologies have strategic national security applications, a transaction is likely to be reviewed under the Committee on Foreign Investment in the United States (CFIUS) and under the UK's National Security and Investment Act (NSIA).
Lockheed Martin said its sales in the first quarter of 2026 hit US$18.0 billion, the second consecutive quarter of revenue growth as the government acquisition moves forward.
Source: Yahoo Finance
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Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
