Kongsberg Defence & Aerospace (KONGSBERG)and Thales have agreed to combine two
of their businesses - KONGSBERG's tactical 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. 

The new company will be owned 50/50 by Thales and Kongsberg Defence & Aerospace
and employ around 350 people in Oslo, Trondheim and Asker, Norway.  

The 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 in revenue by the 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
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 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 KONGSBERG:
KONGSBERG (OSE ticker: KOG) is an international knowledge-based group that
supplies high-technology systems and solutions to customers in a wide range of
markets such as defence, security, maritime, energy, aerospace, climate mapping
and subsea technology. KONGSBERG has more than 14 600 employees in more than 40
countries and has a total revenue of NOK 48.9 billion in 2024.

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 5,000 employees strive to develop and
offer innovative and reliable solutions for extreme conditions worldwide. 

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 EUR4 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 EUR20.6 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. Present in
Norway for a century, Thales has 200 employees across 3 sites.