France’s Thales and Norway’s Kongsberg ink communications joint venture
2025-06-27 16:06 Breaking Defense
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The joint venture between Thales and Kongsberg is expected to significantly enhance their market position and revenue potential, indicating a bullish trend in the defense communications sector.
Summary:
The formation of a joint venture between Thales and Kongsberg marks a pivotal development in the defense communications industry. This collaboration is set to address the increasing demand for connectivity and interoperability among European armed forces, particularly within NATO countries. The venture, equally owned by both companies, is projected to double its revenue by the end of the decade, driven by substantial market opportunities and product synergies. This bullish trend suggests a strengthening of their market position, with potential implications for increased competition and innovation in defense communications. The partnership also underscores the strategic importance of advanced communication systems in modern defense strategies, offering both challenges and opportunities for industry players.
Full text:
BELFAST — French manufacturer Thales and Norwegian supplier Kongsberg Defence and Aerospace have signed an agreement to launch a communications joint venture (JV), with each partner consolidating its current communications business.
Thales, which already operates a communications business in Norway, said in a statement today that the new entity is “designed to meet the growing connectivity needs of defence forces in Norway, NATO countries and other nations,” and is a response to “European armed forces’ call for greater interoperability, sovereignty, and the urgent need for large-scale equipment delivery.”
Ownership will be split on a 50/50 basis between both parties, with a workforce of 350 personnel spread across Oslo, Trondheim and Asker, Norway, said the statement, adding that the two businesses returned combined revenues of approximately NOK 1.5 billion ($178 million) last year.
The JV is forecast to earn revenue worth NOK 3 billion through the end of the decade based on “substantial market opportunities and product synergies.” Thales also noted that the JV will “have a broader product mix with powerful and advanced systems.”
As shared in the statement, Thales in Norway “provides high-grade crypto networks and voice communication systems to NATO and other nations,” while Kongsberg “delivers tactical radio systems for the land domain,” alongside tactical networks for major weapons systems like the National Advanced Surface-to-Air Missile System.
Prior defense collaboration between Thales and Norwegian industry includes a 2021 declaration with mechanical engineering firm Ritek, covering “radar opportunities” offered by the Nordic nation, according to a separate Thales statement.