Kongsberg Acquires Zone 5, Developer of Affordable Missiles for Ukraine Under ERAM Program

Norwegian defense manufacturer Kongsberg Defence & Aerospace has signed an agreement to acquire Zone 5 Technologies LLC, a company specializing in the development of cost-effective, scalable missile systems and counter-drone weapons.

According to Kongsberg’s official website, Geir Håøy, the company’s CEO, described the purchase of Zone 5 as an important strategic step toward expanding Kongsberg’s portfolio of strike missile capabilities.

He emphasized that the ability to produce affordable missiles in large quantities is becoming increasingly important in the context of modern conflicts, where substantial stocks of weapons are needed both to defend against mass drone attacks and to carry out precision strikes against enemy targets.

Zone 5 develops low-cost missiles that can be produced in large quantities and used for long-range strike missions and for countering aerial threats, including unmanned aerial vehicles.

The company has established itself as a competitive supplier in the United States by participating in programs such as Extended Range Attack Munition (ERAM), which Ukraine is expected to receive, as well as the Family of Affordable Mass Missiles (FAMM) and projects focused on testing inexpensive systems for intercepting large drones.

Under the terms of the deal, Kongsberg will acquire a 90% stake in Zone 5, while Zone 5’s management and team will remain minority shareholders. Once all regulatory approvals are completed, Zone 5 will continue operating as an independent subsidiary.

Meanwhile, the parties have not disclosed the deal’s value.