Geir Håøy said: “The acquisition of Zone 5 marks a significant strategic move for Kongsberg. Zone 5 is at the forefront of developing affordable missiles to be produced in high numbers.” The company stated that recent conflicts have highlighted the growing need for high-volume defence capabilities to counter drone attacks and provide credible deterrence.
Kongsberg said its existing portfolio of advanced air defence and long-range strike missiles is complementary to Zone 5’s product range, enabling more comprehensive and flexible defence systems. By combining its technologies with Zone 5’s high-volume assets, the company aims to help nations manage increasingly complex defence scenarios.
Zone 5 has secured contracts and been down-selected in competitive U.S. programmes, including initiatives with the U.S. Air Force and the Defence Innovation Unit. These programmes include ERAM, FAMM and flight testing of low-cost systems designed to counter larger drones.
Eirik Lie said: “Zone 5 represents a strong match with Kongsberg’s ambitions of expanding our strike missile portfolio and developing Full Spectrum Air Defence capabilities, while further advancing our presence in the United States.” He added that Kongsberg was impressed by Zone 5’s ability to bring new technologies to market in strong competition.
Under the agreement, Kongsberg will acquire 90 per cent of Zone 5, while the existing management team will remain minority shareholders and continue to run the business. Following completion, Zone 5 will operate as an independent subsidiary.
Thomas Akers said: “Kongsberg shares Zone 5’s core values of an unwavering commitment to our customers, exceptionally engineered solutions, and valuing our employees who are the foundation of all we do.” He added that both teams looked forward to learning from one another as Zone 5 scales production while remaining an innovative and disruptive company.
Founded in 2011 and headquartered in California, Zone 5 employs more than 250 people and is expected to generate revenues of over USD 100 million in 2025. The company has been profitable for many years and offers a range of digitally engineered, low-cost missiles designed for affordable mass and precision strike missions.
Kongsberg Defence & Aerospace delivers defence systems including NASAMS air defence, Naval Strike Missile and Joint Strike Missile to customers worldwide. The company is a wholly owned subsidiary of Kongsberg Gruppen ASA, which is listed on the Oslo Stock Exchange and is majority owned by the Norwegian state.
