On July 6, three maritime announcements hit almost simultaneously. Lockheed Martin announced it would spend $3.5 billion to buy undersea specialist Ultra Maritime. French company Thales announced the purchase of a 36 percent stake in the French undersea warfare and defense tech company Exail Technologies, with long term plans to purchase the firm entirely at an implied $4.5 billion enterprise valuation. And Italy’s Fincantieri announced a nearly $700 million investment in four maritime drone and undersea engineering firms.
It was not just an impressive display of fiscal might by three legacy defense businesses to invest in established and revenue-generating specialist firms, at a time when start-ups command most of the limelight. That the three firms reached similar conclusions, on similar timelines, reflects both increased adversary challenges in this operating domain and the reality that undersea systems are poised to capture more market share.
Policy makers, military professionals and subject matter experts have long emphasized concerns about undersea challenges, but the last five years have seen a greater imperative across the spectrum of threats facing NATO nations and US allies in Asia-Pacific. And these changes are driving market opportunities across the globe.
