Lockheed Martin (LMT) Stock: FT Reports $3.5B Naval Defense Acquisition Bid

TLDR

• Lockheed Martin is the frontrunner to acquire Ultra Maritime from Advent International in a deal valued at ~$3.5 billion
• A deal could be announced as early as next week (week of July 7)
• Ultra Maritime specializes in anti-submarine warfare tech, including torpedo-detection buoys used by the U.S. and Royal Navy
• LMT stock fell over 1.4% in after-hours trading following the report
• Several other bidders remain in the auction, so the deal is not yet finalized

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Lockheed Martin is in pole position to acquire Ultra Maritime, the naval defense specialist owned by private-equity firm Advent International, in a deal that could be worth around $3.5 billion, according to the Financial Times.

Lockheed Martin Corporation, LMT

The report sent LMT stock down more than 1.4% in after-hours trading on Wednesday. During regular trading, the stock had closed up 4.62% at $545.91.

Ultra Maritime is carved out of Advent’s Cobham Ultra portfolio — a business Advent built through two large UK deals: the £4 billion take-private of Cobham in 2019 and the £2.6 billion acquisition of Ultra Electronics in 2022.

Ultra Maritime focuses on anti-submarine warfare technology, including buoys designed to detect torpedoes and submarines. Both the U.S. Navy and Britain’s Royal Navy are customers.

Talks are ongoing, and no formal agreement has been reached. Sources cited by the FT say an announcement could come as early as the week of July 7.

Advent declined to comment. Lockheed Martin did not immediately respond to requests for comment.

Strategic Fit

Lockheed’s Rotary and Mission Systems segment already serves naval customers with sensors, sonar, and combat systems. Ultra Maritime’s technology would add depth to that underwater warfare capability.

At roughly $110 billion in market cap, a $3.5 billion deal is manageable for Lockheed — targeted rather than transformative.

Several other bidders are still in the running. The FT noted the process remains a competitive auction, meaning a rival could yet table a higher offer. Competing bidders have not been named.

Regulatory Risk

Any deal faces a potentially complex regulatory path. Ultra Maritime’s UK roots and its role supplying the Royal Navy means the transaction will likely draw scrutiny under the UK National Security and Investment Act.

U.S. CFIUS review is also on the table given the cross-border nature of the technology and its customer base.

The FT did not report how Lockheed plans to finance the acquisition. Lockheed has historically funded bolt-on deals using a mix of debt and operating cash flow.

Investors will want clarity on what a $3.5 billion outlay means for buybacks and the dividend.

Bloomberg had previously reported that Advent put Ultra Maritime up for sale earlier this year.