Kongsberg Gruppen ASA (Kongsberg) has closed the acquisition of US missile company Zone 5 Technologies LLC (Zone 5), following approval by US regulatory authorities.
California-based Zone 5 is a company in affordable mass munitions. It designs and manufactures mass-producible interceptors, including the Rusty Dagger long-range strike and White Spike air defence missiles.
“Recent conflicts have demonstrated the critical role of high-volume defence capabilities. This is exactly what Europe needs,” President and CEO of Kongsberg, Eirik Lie, stated.
“Zone 5 adds a distinct capability to the Kongsberg portfolio, bringing a proven track record of rapid production, highly scalable and affordable missiles. Together with the Zone 5 leadership, Kongsberg will support and accelerate the company’s scale-up and international growth.”
Kongsberg will support a rapid entry into the international market for Zone 5 products. According to the company, Zone 5’s product line fits well into the Kongsberg systems and is complementary to Kongsberg products.
Zone 5 has had contract awards in notable programs such as the US Air Force’s AGM-188 FAMM (Family of Affordable Mass Missiles) as well as the export initiative of FAMM more commonly referred to as ERAM (Extended Range Attack Munition).
Additionally, Zone 5 is actively supporting efforts and contracts led by other US Department of War (DoW) Services, US Defense Innovation Unit, and Air Force Research Labs, among others.
Kongsberg is acquiring a 90 per cent stake in Zone 5. The company will continue to be led by founder and CEO, Thomas Akers, and the rest of the management team, all of whom maintain ownership in Zone 5 following the closing. Post-closing, Zone 5 will operate as an independent subsidiary. The value of the transaction has been undisclosed.