KONGSBERG Completes Acquisition of Zone 5

California-based Zone 5 is the market leader in affordable mass munitions. The company 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,” 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.”

KONGSBERG is a market leader within air defence and strike and will support a rapid entry into the international market for Zone 5 products. Zone 5’s product line fits well into the KONGSBERG systems and is complementary to KONGSBERG products.

By combining the high-performing KONGSBERG portfolio and Zone 5’s high-volume assets, KONGSBERG will provide comprehensive and flexible systems in the markets for air defence and strike.

Zone 5’s high performance has marked it as the stand-out company in the affordable mass marketplace with contract awards in notable programmes like 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 DoW Services, US Defense Innovation Unit, and Air Force Research Labs, among others.

KONGSBERG is acquiring a 90 percent 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 is undisclosed.