Kongsberg Maritime Signs Agreement to Sell its Subsidiary Hydroid and Enter Into Alliance to Provide Future Solutions to the US Navy
(Source: Kongsberg; issued Feb 04, 2020)
Kongsberg Maritime AS has signed an agreement to sell its underwater technology company Hydroid, Inc. for USD 350 million to Huntington Ingalls Industries (HII), the largest supplier of vessels to the US Navy. The agreement provides that, as of closing, the parties will enter into a strategic alliance agreement concerning underwater technology and maritime solutions.

Kongsberg Maritime acquired Hydroid for USD 80 million in 2007 and is now selling this US subsidiary for USD 350 million on a debt-free and cash-free basis and as adjusted off an agreed upon working capital.

"Kongsberg Maritime has driven technology development and created considerable value during the 12 years it has owned Hydroid, and we are capitalizing on this now. We are proud to have positioned Hydroid as a leading supplier of small and medium-sized autonomous underwater vessels in the market. We now look forward to work together with HII on new, maritime solutions and, at the same time, strengthening our world-leading underwater environment in Horten,” says Geir Håøy, President and CEO of the KONGSBERG Group.

Kongsberg Maritime delivers globally first-class products to customers, including sensor and sonar technology and hydro acoustics from Horten in Norway. According to the agreement, the parties will enter into a strategic alliance at closing. It will combine the two companies’ complementary experience, expertise and technology. The aim of the agreement is to strengthen both parties' abilities to sell their products and solutions to both US and global customers in the underwater segments.

“Kongsberg Maritime will continue to aggressively develop technology, including that related to our underwater expertise. We are the global leader in civilian-sector maritime technology, while HII is the world's largest supplier of navy vessels. This alliance will allow a wider range of our maritime solutions for both naval and civilian usage in the United States and the rest of the world,” says Egil Haugsdal, President of Kongsberg Maritime.

Hydroid, Inc. is a wholly-owned indirect subsidiary of Kongsberg Maritime AS and has its head office in Pocasset Massachusetts in the USA. Hydroid builds autonomous underwater vessels and sells them to military and commercial markets, with the US Navy as its biggest customer.

At the end of Q4 2019, Hydroid had an order backlog of MNOK 813. In 2019, Hydroid achieved revenue of MNOK 862 and an EBITDA of MNOK 133. Refer to the table below for key figures for the 2016-2019 period.

The transaction is expected to be completed in Q1 2020 and is subject to customary closing conditions, such as approval by the relevant authorities.

Upon repatriation, the net proceeds in Norway are expected to be about USD 248 million after tax. The final accounting gain will be known when the Q1 2020 results are presented on 10 May 2020.

KONGSBERG will announce how the proceeds are to be utilised on 12 February 2020 in connection with the presentation of its Q4 2019 results.

Huntington Ingalls Industries (HII)
--The USA's largest military shipbuilding company
--One of the major suppliers to the US Navy
--Head office in Newport News, Virginia
--Employs more than 42,000 people in the USA and worldwide

Hydroid
--Wholly-owned, indirect subsidiary of Kongsberg Maritime since 2007
--A leading supplier of advanced marine robotics in both the naval and civilian markets in the USA
--Supplier of the REMUS autonomous underwater vessels since 2001


Kongsberg is an international, knowledge-based group that supplies high-tech systems and solutions to customers in the maritime, oil & gas, defence and aerospace industries. Kongsberg has almost 11,000 employees in 40 countries.

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Huntington Ingalls Industries to Acquire Hydroid and Establish Strategic Alliance with Kongsberg Maritime
(Source: Huntington Ingalls Industries, Inc.; issued Feb 04, 2020)
NEWPORT NEWS, Va. --- Huntington Ingalls Industries announced today that it has entered into an agreement to acquire Hydroid Inc. a leading provider of advanced marine robotics to the defense and maritime markets and a U.S. based indirect subsidiary, wholly owned by 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 U.S. 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 expands 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 $350 million, which will be effectively reduced by tax benefits that are preliminarily valued over $50 million, to be received by HII.

“We are very excited about bringing Hydroid into the HII family and establishing a strategic alliance with Kongsberg Maritime,” said Mike Petters, HII’s president and CEO. “Hydroid’s advanced capabilities and reputation for excellence in autonomous and unmanned maritime systems provide the perfect complement to our existing unmanned operations, including Proteus in Panama City and our partnership with Boeing to produce the Orca XLUUV. 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.”

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 U.S. Navy, U.S. Coast Guard and other national security customers. 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.


Kongsberg Maritime is a wholly owned subsidiary of KONGSBERG, an international, knowledge-based corporation headquartered in Norway. The group delivers advanced technology systems and solutions to clients within the defense and aerospace market and commercial maritime market.

Hydroid is a field-proven technology leader in advanced marine robotics. Since 2001, its REMUS line of unmanned underwater vehicles (UUV) has provided innovative, rapidly deployable solutions for use in defense, marine research and commercial applications. Hydroid specializes in UUV design, engineering, production and support.

Huntington Ingalls Industries is America’s largest military shipbuilding company and a provider of professional services to partners in government and industry. HII’s Technical Solutions division provides a wide range of professional services through its Fleet Support, Mission Driven Innovative Solutions, Nuclear & Environmental, and Oil & Gas groups. Headquartered in Newport News, Virginia, HII employs more than 42,000 people operating both domestically and internationally.

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