Lockheed Martin Acquires Anti-Submarine Warfare Specialist Ultra Maritime in $3.45B Deal

Lockheed Martin, famous for its fighter jets and missile systems, is now branching into the depths of the ocean. The company agreed to buy Ultra Maritime, a specialist in anti-submarine warfare, for $3.45 billion.

The $3.45 Billion Deal

The purchase price is $3.45 billion. Lockheed Martin will take over Ultra Maritime from Advent International, a private equity firm. Private equity firms own companies and later sell them for profit.

Citi advised Lockheed Martin on the buy side. Guggenheim and JPMorgan advised Advent International on the sell side. The Financial Times first reported the deal and indicated that it was expected to be announced within the week.

Filling a Gap Underwater

Ultra Maritime manufactures equipment used to detect enemy submarines. Its products include radar, electronic warfare systems, and torpedo defense countermeasures. Lockheed Martin wants to add these tools to its Rotary and Mission Systems business.

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Lockheed Martin Rotary and Mission Systems President Stephanie C. Hill stated: "By joining forces with Ultra Maritime, we're accelerating our commitment to deliver the most advanced undersea and anti-submarine warfare capabilities to our U.S. and allied partners across the globe."

Defense spending worldwide reached $2.89 trillion in 2025, driven largely by European countries boosting their military budgets.

The acquisition fits a broader trend of defense contractors expanding into undersea warfare as navies worldwide invest in anti-submarine capabilities. Rising tensions in the Atlantic and Pacific have prompted NATO allies to modernize their sonar, radar, and torpedo defense systems. Ultra Maritime's expertise in passive acoustic detection and electronic countermeasures directly addresses these needs. For Lockheed Martin, which already builds surface ships and underwater drones, adding Ultra Maritime deepens its portfolio in a market where stealth and detection technology are critical.

Global Defense Trends

This move comes as global defense budgets continue to climb, with European nations particularly increasing spending in response to heightened threats from Russia and China. The undersea domain has become a critical frontier, with submarines playing a key role in deterrence and intelligence gathering. Ultra Maritime's expertise in passive acoustics and countermeasures positions Lockheed Martin to better serve clients seeking to protect sea lanes and naval assets. The acquisition also reflects a growing emphasis on layered anti-submarine warfare systems that combine sensors, decoys, and unmanned vehicles.

The acquisition is subject to customary regulatory approvals and is expected to close in the second half of 2025. Lockheed Martin has been expanding its undersea warfare capabilities through work on U.S. Navy submarine programs and unmanned underwater vehicles. Ultra Maritime's acoustic sensors and electronic countermeasures will complement these efforts, delivering a more integrated suite of anti-submarine warfare solutions.

What to Watch

After the transaction is finalized, Ultra Maritime's employees will join Lockheed's Rotary and Mission Systems division.

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