Huntington Ingalls Industries said today it has agreed to acquire Hydroid, which provides advanced marine robotics to the defense and maritime markets, in a $350 million deal.
As part of the transaction, HII will also establish a strategic alliance with Kongsberg Maritime, the owner of Hydroid.
The Pocasset, MA-based Hydroid will become part of Huntington Ingalls' technical solutions division.
"The acquisition of Hydroid expands HII capabilities in the strategically important and rapidly growing autonomous and unmanned maritime systems market," the company said, noting the $350 million deal value will be reduced by tax benefits "preliminarily valued" at more than $50 million.
In an interview with Inside Defense this morning, Mike Petters, HII's chief executive, said the contractor's acquisition of a division of the Columbia Group in 2015 helped it understand the unmanned market. He said the company came to understand it wasn't going to be able to organically build all the needed capabilities.
"The Navy wants to go down the path of unmanned," Petters added. "We want to be ready to support the Navy, however they proceed down that path."
Petters said the new strategic alliance will ensure the Navy has access to the best technologies. HII said the alliance is meant to bolster both companies' offerings to the U.S. Navy, U.S. Coast Guard and other 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," HII said.
The deal is slated to close by the end of March.