California — June 10, 2026 : Norwegian defence and technology company Kongsberg Gruppen has completed its acquisition of California-based missile developer Zone 5 Technologies after receiving all required regulatory approvals from U.S. authorities. The transaction gives Kongsberg a 90 percent ownership stake in the company, strengthening its position in the rapidly expanding market for affordable, mass-producible missile and air defence systems.
Financial terms of the deal were not disclosed. However, Kongsberg confirmed that Zone 5 Technologies will continue to operate as an independent subsidiary. Founder, Chief Executive Officer and Chief Technology Officer Thomas Akers, along with the existing management team, will retain a 10 percent minority ownership stake and continue overseeing the company's daily operations.
Founded in 2011 and headquartered in San Luis Obispo, California, Zone 5 Technologies employs more than 250 personnel and reported revenues exceeding $100 million in 2025. The company has maintained consistent profitability while developing a portfolio of low-cost, digitally engineered missile systems designed for large-scale production.
The acquisition adds several important defence programs and products to Kongsberg’s portfolio. Among the most notable is the AGM-188A Rusty Dagger, a low-cost air-launched precision strike missile developed under the U.S. Air Force’s Extended Range Attack Munition (ERAM) and Family of Affordable Mass Missiles (FAMM) programs. The missile weighs approximately 500 pounds (225 kilograms), carries a 100-pound warhead, and has a reported range exceeding 450 kilometres while operating at high subsonic speeds.
Recent reports indicate that the AGM-188A Rusty Dagger was successfully integrated onto the F-16 fighter aircraft earlier this year. Initial production batches are expected to support Ukraine’s defence requirements as part of ongoing efforts to strengthen long-range strike capabilities.
Zone 5’s portfolio also includes the White Spike interceptor, a low-cost Group 3+ air defence missile designed for counter-unmanned aerial system (C-UAS) missions. The interceptor is available in both ground-launched and air-launched configurations and is expected to complement Kongsberg’s existing air defence offerings, including the widely deployed NASAMS air defence system.
Another key asset is the Paladin UAS, a multi-mission unmanned aircraft system included on the U.S. Defense Innovation Unit’s Blue UAS list. The platform is capable of autonomous operations such as drone interception, reconnaissance missions and munitions delivery, providing additional capabilities for military and security operators.
The acquisition comes at a time when Western defence planners are increasingly prioritising affordable, high-volume weapons production. Recent conflicts have highlighted the challenges associated with relying solely on expensive, low-volume precision weapons, while also underscoring the importance of rapidly replenishing missile stockpiles and countering large-scale drone threats.
Eirik Lie, President of Kongsberg Defence & Aerospace, said recent conflicts have demonstrated the critical importance of high-volume defence capabilities.
“Recent conflicts have demonstrated the critical role of high-volume defense capabilities. This is exactly what Europe needs,” Lie said. “Zone 5 adds a distinct capability to the KONGSBERG portfolio, bringing a proven track record of rapid production, highly scalable, and affordable missiles.”
Kongsberg Gruppen Chief Executive Officer Geir Håøy said the acquisition combines complementary strengths from both companies.
“KONGSBERG has a world-leading portfolio of advanced air defense and long-range strike missile technologies,” Håøy stated. “By combining the high-performing KONGSBERG portfolio and Zone 5's high-volume assets, KONGSBERG can provide comprehensive and flexible systems that allow nations to manage complex defense scenarios.”
The acquisition was originally announced in December 2025 and formally closed following completion of the regulatory review process. Industry observers view the transaction as part of a broader trend among Western defence manufacturers to expand production capacity and develop more affordable weapons systems capable of supporting sustained military operations.
With the deal now finalized, Kongsberg plans to use its global industrial network and international customer base to accelerate production growth at Zone 5 and expand the availability of its affordable missile systems across Europe and other allied markets. The acquisition also strengthens Kongsberg’s presence in the United States defence sector while adding proven mass-production missile technologies to its existing portfolio, which includes the Naval Strike Missile (NSM), Joint Strike Missile (JSM), and NASAMS air defence system.
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