Lockheed Martin leads race for Advent's Ultra Maritime in $3.5 billion deal, FT reports

July 2 (Reuters) - Lockheed Martin is leading the race to acquire Ultra Maritime, owned by private-equity firm Advent International, in a deal that could value the naval defence business at about $3.5 billion, the Financial Times reported on Thursday, citing people familiar with the matter.

Talks are ongoing, and a deal could be announced as early as next week, the report said, adding that several other bidders remain interested in Ultra Maritime as part of a competitive auction process.

Advent declined to comment, while Lockheed Martin did not immediately respond to a Reuters request for comment.

Ultra Maritime, which specializes in anti-submarine warfare and undersea defence technologies, is part of Cobham Ultra, a group created after Advent acquired British aerospace Cobham in 2019 and later combined it with Ultra Electronics following its 2022 takeover.

The potential deal comes as defence contractors seek to expand their military technology portfolios amid heightened geopolitical tensions and increased defence spending driven by conflicts, including the war in Ukraine and fighting in the Middle East.

Shares of Lockheed Martin were down marginally in extended trading.

(Reporting by Apratim Sarkar in Bangalore; Editing by Vijay Kishore)