Norwegian defense contractor Kongsberg Group has agreed to acquire a majority stake in American missile developer Zone 5 Technologies, expanding its portfolio of low-cost, mass-producible strike and counter-unmanned aerial system weapons.
Kongsberg will purchase 90 percent of the California-based company through its Defence and Aerospace division, with Zone 5’s management team retaining a minority stake.
Financial terms were not disclosed, and the deal is subject to regulatory approval, after which Zone 5 will operate as an independent subsidiary.
Established in 2011, Zone 5 employs approximately 250 personnel and reported over $100 million in revenue in fiscal 2025.
“The acquisition of Zone 5 marks a significant strategic move for Kongsberg,” said Geir Håøy, chief executive officer at Kongsberg.
“Zone 5 is at the forefront of developing affordable missiles to be produced in high numbers.”
‘Strong Match’
Kongsberg noted that recent conflicts have highlighted the growing demand for high-volume weapons to counter mass drone attacks and conduct long-range strikes, a need that the Zone 5 buyout aims to address.
Among the San Luis Obispo-headquartered firm’s flagship systems are the Rusty Dagger subsonic missile, the White Spike drone interceptor, and the Paladin tactical hexacopter system.
“Zone 5 represents a strong match with KONGSBERG’s ambitions … while further advancing our presence in the United States,” said Eirik Lie, president of Kongsberg Defence and Aerospace.
“We are impressed with how Zone 5 has been successful in bringing new technologies to the market in fierce competition with the rest of the industry, and we look forward to working with the Zone 5 team.”
