Defense heavyweight Lockheed Martin is leading the race to buy naval defense group Ultra Maritime, CNBC has learned.
The deal to acquire Ultra is roughly $3.5 billion, and Guggenheim and JPMorgan are advising on the sell side, according to sources close to CNBC.
Ultra is owned by private equity firm Advent International, and specializes in anti-submarine technology. The company makes radar and electronic warfare systems, as well as torpedo defense countermeasures.
A [Financial Times report last week](https://www.ft.com/content/5599eca5-5b23-4a10-a1fb-03db2d18bc69?syn-25a6b1a6=1) said that talks were still ongoing and a deal could be announced as early as this week.
[Advent was reportedly put up for sale](https://www.bloomberg.com/news/articles/2026-03-09/advent-said-to-explore-4-billion-sale-of-naval-defense-business?embedded-checkout=true) earlier in 2026 for more than 3 billion pounds, or $4 billion.
Lockheed Martin is one of the world's largest defense firms, producing planes such as the F-35 Lightning II fighter jet and munitions like the Patriot air defense missile.
Defense stocks have enjoyed a bumper year in 2026, as conflicts from Ukraine to Iran increase demand for munitions worldwide.
In April, the [Stockholm International Peace Research Institute](https://www.sipri.org/media/press-release/2026/global-military-spending-rise-continues-european-and-asian-expenditures-surge) said [global defense outlays in 2025](https://www.cnbc.com/2026/04/27/global-military-spending-record-2025-europe-asia-ukraine-sipri.html) climbed to a staggering $2.89 trillion, led by massive spending by European nations.