Advent International sells Ultra's electronic warfare technology division, finalizing Cobham break-up

In the United Kingdom, the business landscape is witnessing significant changes as Advent International, a private equity firm, progresses in selling an advanced defense technology unit. This division, known for its Electronic Warfare Simulation Technology, is part of Ultra Electronics, a company Advent previously acquired as part of a larger business strategy. The decision to sell comes as part of a broader dismantling of Cobham, a storied British industrial group, which Advent purchased in a £4 billion deal in 2020. The ongoing negotiations surrounding the sale present a critical moment for the UK's defense sector. The Electronic Warfare Simulation Technology division is recognized for providing training and performance validation capabilities to the military. It specializes in countermeasures and threat-simulation technology, ensuring that the naval, air force, army, and the overall defense industry are equipped with accurate testing and training solutions. Despite the value this technology brings to military operations, early bidders indicate that the division may not command a high price in the current market, reflecting broader trends in defense acquisitions. A notable concern in this sale is the potential requirement for government approval under the National Security and Investment Act, which comes into play due to the sensitive nature of the division's operations. This act aims to protect national interests in strategic sectors, especially when foreign entities consider entering or acquiring technology vital to national security. Advent International has led a contentious and thorough process of dismantling Cobham’s assets, a move that has drawn criticism from the founding family and advocates of British industry. The ongoing changes can be seen as transformative yet controversial, with observers split on the implications these decisions will have for the future of British defense manufacturing. Already, Advent has offloaded assets such as Cobham Aerospace Communications to Thales Group for £850 million in 2023. As the sale of the Electronic Warfare Simulation Technology division approaches completion, it marks the near end of Advent's extensive restructuring of the Cobham business and raises questions about the enduring legacy of one of Britain's oldest manufacturing names.