Kongsberg acquires Zone 5, boosts missile production and US presence

Kongsberg Defence & Aerospace has announced the acquisition of Zone 5 Technologies LLC, a California-based company designing and producing cost-effective, long-range, high-precision missiles and anti-drone solutions. The transaction value remains confidential. Kongsberg will acquire 90% of Zone 5, with the management retaining a minority stake. This strategic move aims to expand Kongsberg's missile portfolio and strengthen its presence in the USA, complementing its existing air defence and long-range missile systems.

Zone 5, established in 2011, currently employs over 250 people and anticipates revenues of around $100m in 2025, having been profitable for several years, including 2025. The company's product offerings include Rusty Dagger, a low-cost, high-precision missile, and White Spike, a Group 3+ class low-cost missile. Zone 5 has secured contracts in competitive US programs like the US Air Force ERAM and FAMM.

The acquisition is conditional on regulatory approvals and other standard closing conditions. Zone 5 will operate as an independent subsidiary post-acquisition. Kongsberg views this as crucial for enhancing defence capabilities in modern warfare by enabling large-volume production of affordable missiles.