American military shipbuilding company Huntington Ingalls Industries (HII) has entered into an agreement to acquire Hydroid Inc. a provider of advanced marine robotics to the defense and maritime markets and a US-based subsidiary of Norway’s Kongsberg Maritime.
In conjunction with the transaction, HII and Kongsberg Maritime are also establishing a strategic alliance to jointly market naval and maritime products and services to the US government market and potentially to global markets.
Hydroid, based in Pocasset, Massachusetts, will become part of HII’s Technical Solutions division. The acquisition of Hydroid is said to expand HII capabilities in “the strategically important and rapidly growing autonomous and unmanned maritime systems market”.
The transaction is subject to regulatory review and customary closing conditions and is expected to close in the first quarter of 2020. The value of the transaction is USD 350 million, which will be effectively reduced by tax benefits that are preliminarily valued over USD 50 million, to be received by HII.
“This transaction, along with the strategic alliance with Kongsberg Maritime, demonstrates our long term commitment to the U.S. Navy, the U.S. Coast Guard and our national security customers and allies globally,” Mike Petters, HII’s president and CEO, commented.
As explained, the strategic alliance between HII and Kongsberg Maritime leverages the companies’ combined capabilities and resources to enhance their respective services and product offerings to the US Navy, US Coast Guard and other national security clients. The companies will also explore opportunities to market each other’s products to customers on a global scale and to collaborate to create innovative solutions and additional opportunities for growth.