Lockheed Martin is reported to be the leading bidder in negotiations to acquire Ultra Maritime from Advent International, in a transaction that could put the naval defence specialist's value at about $3.5 billion. Sources familiar with the discussions told the report that talks are ongoing and that a deal could be disclosed as early as next week.
Those same sources said the sale process remains competitive, with several other suitors continuing to express interest in Ultra Maritime. Representatives for Lockheed Martin and Advent had not provided comments in response to requests for information at the time of reporting.
Ultra Maritime concentrates on anti-submarine warfare and undersea defence technologies. It is a component of Cobham Ultra - a group formed after Advent acquired British aerospace firm Cobham in 2019 and later combined that business with Ultra Electronics following Advent's 2022 takeover of Ultra Electronics.
The potential transaction arrives as defence contractors seek to broaden their military technology portfolios. The report frames the interest in the context of heightened geopolitical tensions and increased defence spending, which the report links to conflicts including the war in Ukraine and the fighting in the Middle East.
Market response was muted to the news; shares of Lockheed Martin were down marginally in extended trading.
Context and process
According to the reporting, Advent International is running a competitive auction for Ultra Maritime. That process has yielded multiple bidders, with Lockheed Martin currently viewed as the front-runner. Negotiations remain active and timing for any formal announcement could be near, as parties continue to engage.
Business scope
Ultra Maritime's portfolio is concentrated on anti-submarine and undersea defence systems, technologies that are increasingly sought by prime defence contractors as they look to supplement their offerings amid elevated global defence budgets.
Market and strategic considerations
The prospective deal is presented against a backdrop of rising defence expenditures tied to ongoing conflicts cited in the report. While the coverage does not detail strategic plans or integration steps, the acquisition, if completed, would expand Lockheed Martin's capabilities in undersea warfare platforms and related technologies.