Transactions

June 10 2026

KippsDeSanto & Co. advises Zone 5 Technologies, LLC on its sale to Kongsberg Defence & Aerospace

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KippsDeSanto & Co. is pleased to announce that its client, Zone 5 Technologies, LLC (“Zone 5” or the “Company”), has been acquired by Kongsberg Defence & Aerospace (“KONGSBERG”) and will continue to operate as an independently managed, majority-owned subsidiary.

Zone 5 is a premier developer of digitally engineered, low-cost missiles and kinetic Counter-Unmanned Aerial Systems (“C-UAS”) for the defense and aerospace markets. Headquartered in San Luis Obispo, California, the Company designs and engineers platforms that enable affordable mass and precision strike engagements from a variety of aircraft. Zone 5’s capabilities address the critical need for high-volume, affordable munitions required to defend against massive air drone attacks and provide vital strike capability against a broad range of adversary assets.

The Company's innovative product portfolio includes Rusty Dagger, a versatile, low-cost strike missile with flexible launch options; White Spike, a group 3+ affordable air interceptor; and Paladin, a low collateral effects interceptor. Zone 5’s cutting-edge technologies have been selected for highly visible, strategic programs, including the U.S. Air Force’s Extended Range Attack Munition (“ERAM”) and Family of Affordable Mass Missiles (“FAMM”). Additionally, the Company supports U.S. Defense Innovation Unit (“DIU”) flight testing for low-cost kill systems against larger drones. This transaction adds critical development and high-volume production capacity for missile effectors, underscoring Kongsberg's commitment to expanding its strike missile portfolio, developing Full Spectrum Air Defense capabilities, and further advancing its strategic footprint in the United States. 

We believe this transaction highlights several key trends in the defense technology M&A market:

- Heightened demand for low-cost, high-volume kinetic capabilities that rapidly rebuild and modernize depleted domestic and allied munitions stockpiles

- Strong value placed on agile defense technology firms with a proven track record of moving platforms into Programs of Record

- Continued pursuit of U.S.-based engineering and production assets by international primes expanding their domestic footprint

About KippsDeSanto & Co. 

KippsDeSanto & Co. is an investment banking firm focused on serving growth-oriented Aerospace / Defense, Government Services and Technology companies. We are focused on delivering exceptional M&A and Financing transaction results to our clients via leveraging our scale, creativity, and industry experience. We help market leaders realize their full strategic value. Having advised on over 250 industry transactions since 2008, KippsDeSanto is recognized for our analytical rigor, market insight, and broad industry relationships. There’s no substitute for experience. For more information, visit www.kippsdesanto.com.

Investment Banking products and services are offered through KippsDeSanto & Co., a non-bank subsidiary of Capital One, N.A., a wholly-owned subsidiary of Capital One Financial Corporation, and a member of FINRA and SIPC. Products and services are Not FDIC insured, Not Bank Guaranteed, May Lose Value, Not a Deposit, and Not Insured by Any Federal Government Agency.