Thales and KONGSBERG to establish new major Defence communications joint venture in Norway

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Thales, a global high-tech leader, and Kongsberg Defence & Aerospace, part of the Kongsberg group and a premier supplier of defence products and systems, have signed an agreement to set up a joint venture company in secure communications.

The new company will consolidate Thales' crypto and secure communications business in Norway and KONGSBERG's communications business, which includes software-defined military radios. This collaboration aims to better address the current and future needs of armed forces in Norway, NATO and internationally, employing approximatively 350 people.

The merger will create a new key player with a strong and comprehensive secure communications portfolio, particularly relevant in the context of accelerating defence spending across Europe.

Thales and Kongsberg Defence & Aerospace have agreed to combine two of their businesses - KONGSBERG's secure communications unit and Thales' crypto and secure communications business in Norway - in a joint venture designed to meet the growing connectivity needs of defence forces in Norway, NATO countries and other nations. This new company is a response to European armed forces' call for greater interoperability, sovereignty, and the urgent need for large-scale equipment delivery.

The new company will be jointly owned 50/50 by Thales and Kongsberg Defence & Aerospace with approximatively 350 strong workforce based across Oslo, Trondheim and Asker, Norway.

These two businesses had combined revenues of about NOK 1.5 billion (130 million euros) in 2024. The venture anticipates continued growth, projecting that the combined businesses will achieve NOK 3 billion (254 million euros) in revenue by end of the decade driven by substantial market opportunities and product synergies.

It will have a broader product mix with powerful and advanced systems. Thales in Norway provides high-grade crypto networks and voice communication systems to NATO and other nations. KONGSBERG delivers tactical radio systems for the land domain (combat vehicles and soldiers) and tactical networks for many systems, including NASAMS air defence. Both companies have a strong history in their respective domestic defence and secure communications markets, with significant export potential.

By consolidating KONGSBERG's secure communications and Thales crypto expertise, we will create a comprehensive, robust communications offering and be better positioned to deliver and develop current and future technologies and services to the armed forces, said Eirik Lie, President of Kongsberg Defence & Aerospace. Together, we can develop and sustain a broader and stronger product portfolio and domain expertise to create a solid partner for the Norwegian customer, while also gaining access to better market channels internationally, particularly with the support of Thales' global distribution network, said Lie.

Through this jointly owned company, we will be able to strengthen collaboration and leverage synergies between KONGSBERG and Thales, creating a new key player in secure communications that supports bilateral cooperation between Norway and France. The new company will be also particularly well-positioned to address markets where there are complementarities between Thales and KONGSBERG's portfolio and geographical footprint, said Christophe Salomon, Executive Vice President of Thales, Secure Communications & Information Systems.

The completion of the transaction is subject to customary regulatory approvals.

About Thales

Thales (Euronext Paris: HO) is a global leader in advanced technologies for the Defence, Aerospace, and Cyber & Digital sectors. Its portfolio of innovative products and services addresses several major challenges: sovereignty, security, sustainability and inclusion.

The Group invests more than 4 billion per year in Research & Development in key areas, particularly for critical environments, such as Artificial Intelligence, cybersecurity, quantum and cloud technologies.

Thales has more than 83,000 employees in 68 countries. In 2024, the Group generated sales of 20.6 billion.

About Thales in Norway

Thales in Norway is a significant technology supplier for Defence, Space, Avionics and Digital Identity & Security. Thales is a trusted partner in developing and delivering world leading, high-grade secure communication systems for extreme challenges within the defence and security markets in Norway and its allies. Thales Norway AS operates under the Norwegian Safety Act and is an integrated part of the total defence concept in Norway. Furthermore, Thales operates a helicopter Training & Simulation centre in Stavanger.

About Kongsberg Defence & Aerospace

Kongsberg Defence & Aerospace is Norway's premier supplier of defence products and systems for command and control, surveillance, space, tactical communications, remote weapon stations and missiles systems. In addition, we have extensive capabilities within advanced composite manufacturing and maintenance, repair and overhaul within the aircraft and helicopter market.

Kongsberg Defence & Aerospace AS is a wholly owned subsidiary of Kongsberg Gruppen ASA and consists of three divisions, each with a world-class product portfolio and a proven track record. Its 4,500 employees strive to develop and offer innovative and reliable solutions for extreme conditions worldwide.

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