California-based Zone 5 designs and manufactures mass-producible interceptors. Its products include the “Rusty Dagger” long-range strike missile and the “White Spike” air defence missile.
Kongsberg said Zone 5 is a market leader in affordable mass munitions. The company said the acquisition adds a distinct capability to its portfolio.
“Recent conflicts have demonstrated the critical role of high-volume defence capabilities. This is exactly what Europe needs,” said Eirik Lie, President and CEO of KONGSBERG.
“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,” Lie said.
Kongsberg said it is already a market leader in air defence and strike systems. The company said it will support rapid entry into the international market for Zone 5 products.
Zone 5’s product line fits with Kongsberg systems and is complementary to the group’s existing products. Kongsberg said combining its portfolio with Zone 5’s high-volume assets will allow it to provide comprehensive and flexible systems in air defence and strike markets.
Zone 5 has received contract awards in programmes including the U.S. Air Force’s AGM-188 FAMM, or Family of Affordable Mass Missiles. It is also involved in the export initiative linked to FAMM, more commonly referred to as ERAM, or Extended Range Attack Munition.
The company is also supporting efforts and contracts led by other Department of War services. These include the U.S. Defense Innovation Unit and Air Force Research Labs, among others.
Kongsberg is acquiring a 90% stake in Zone 5. Zone 5 will continue to be led by founder and CEO Thomas Akers and the existing management team, all of whom retain ownership in the company after closing.
Following the transaction, Zone 5 will operate as an independent subsidiary. Kongsberg said the acquisition is intended to support the company’s scale-up and international growth.
