Thales and Kongsberg Form Joint Venture to Enhance Defense Communications

On June 27, 2025, French aerospace and defense company Thales and Norwegian defense supplier Kongsberg Defence and Aerospace officially announced their joint venture (JV), aimed at bolstering communications capabilities for defense forces in Norway and NATO countries. This initiative was unveiled during a press briefing, where both companies outlined their strategic objectives and market expectations.

The joint venture is structured as a 50/50 partnership, consolidating the existing communications businesses of both Thales and Kongsberg. The JV is projected to generate revenues of NOK 3 billion (approximately $328 million) by the end of the decade, capitalizing on substantial market opportunities and product synergies. According to a statement from Thales, the new entity will address the increasing demand for connectivity and interoperability among armed forces, reflecting a broader trend in European defense spending.

Dr. Anna Persson, a senior analyst at the Norwegian Defence Research Establishment, emphasized the importance of this collaboration in the context of European defense. "This joint venture comes at a crucial time when NATO allies are enhancing their military capabilities in response to evolving geopolitical threats," she stated in an interview on June 28, 2025. The JV is expected to fulfill the urgent needs of European armed forces for advanced communication systems, thereby contributing to regional security.

Thales, which operates a significant communications business in Norway, specializes in high-grade cryptographic networks and voice communication systems. Kongsberg, on the other hand, is known for its tactical radio systems and advanced networking solutions for major weapons systems, such as the National Advanced Surface-to-Air Missile System. The integration of these complementary technologies is anticipated to create a robust product offering tailored to the demands of modern warfare.

The joint venture will employ approximately 350 personnel across three locations in Norway: Oslo, Trondheim, and Asker. In 2024, the combined revenues from both companies' communications divisions reached NOK 1.5 billion ($178 million), indicating a solid foundation for growth in this new venture.

Historically, Thales and Kongsberg have collaborated on various defense projects. In 2021, they signed a declaration with Ritek, a mechanical engineering firm, to explore radar opportunities in Norway, further solidifying their partnership in the defense sector.

The implications of the Thales-Kongsberg joint venture extend beyond mere financial projections; they reflect a paradigm shift in European defense collaboration. As NATO continues to prioritize interoperability and rapid equipment delivery, this JV positions both companies to play a pivotal role in shaping the future of defense communications.

This initiative aligns with broader trends in defense spending across Europe, where countries are increasingly investing in their military capabilities. According to data from the Stockholm International Peace Research Institute (SIPRI), European defense expenditures rose by 3% in 2024, driven by heightened security concerns stemming from geopolitical tensions.

In conclusion, the formation of the Thales-Kongsberg joint venture marks a significant development in the defense industry, with potential benefits for both companies and European security as a whole. As defense forces adapt to new challenges, collaborations like this will be crucial in ensuring they remain equipped to respond effectively in a rapidly evolving landscape.