Security News > 2021 > August > British defence supplier Ultra Electronics to be sold for £2.6bn to US-controlled firm

British defence tech specialist Ultra Electronics has been bought for £2.6bn by a US private equity firm, through a wholly owned UK subsidiary that was itself once a proud standalone business.

Ultra's acquisition by Cobham Group plc, owned by US fund Advent International, sees the defence firm's shareholders receive £35 per share - as well as ownership of the critical Royal Navy supplier passing to a foreign entity, albeit one headquartered in an allied country.

Ultra chief exec Simon Pryce praised Cobham in a prepared statement, adding: "The combination will also create a defence electronics business of greater scale, bringing together two businesses with complementary technology, design, engineering and manufacturing capabilities, which we believe will enable the delivery of a broader range of integrated, cost competitive and high performance solutions across a wider range of platforms, benefiting our mutual customers and wider stakeholders."

Strangely low profile despite its position in the defence electronics supply chain, Ultra supplies the Royal Navy with sonobuoys, full-blown sonar systems for warships and submarines, and various other military electronics as well as aerospace equipment.

A British government spokesman told defence trade news site Shephard Media, when the buyout was first made public: "While this is a commercial matter for the companies involved, we are closely monitoring the transaction."

Another British defence supplier due to be bought out by the US is Meggitt, makers of aerospace components and subsystems, as well as military training systems and aids.

News URL

https://go.theregister.com/feed/www.theregister.com/2021/08/17/ultra_electronics_sold_2_6_bn/