M&A INDUSTRY UPDATE | Defense

Nordic defense M&A momentum continued into the first half of 2026, supported by rising defense budgets, geopolitical uncertainty and long-term rearmament programs.

M&A activity in the Nordic defense sector remained strong in H1 2026, following a record 42 transactions in 2025. Geopolitical tension, rising defense budgets and long-term rearmament programs continue to strengthen order books and support consolidation across the sector.

Fourteen Nordic defense companies were acquired during the first half of 2026. Domestic buyers accounted for 63% of the transactions, reflecting the importance of scale, proximity to strategic assets and operational integration. Strategic buyers continue to dominate the market, while financial investors are stepping up their activity in defense-adjacent and dual-use assets.

The sector’s growth outlook extends well beyond traditional defense manufacturing. Logistics, cybersecurity, training and simulation, AI and autonomous systems, advisory services, secure communications and data infrastructure are all benefiting from increased investment.

Valuations have re-rated structurally since 2022. Record order backlogs and greater visibility around multi-year defense budgets confirm that the shift is structural rather than cyclical.

Rising defense spending and geopolitical uncertainty have fundamentally reshaped the Nordic defense M&A landscape, creating sustained opportunities for consolidation among both strategic buyers and financial investors. NIKOLAI LUNDE, Defense Specialist and Managing Partner at Oaklins Norway

Our latest sector update explores the trends shaping the Nordic defense M&A market, including transaction activity, buyer dynamics, attractive growth segments and valuation benchmarks in private and listed markets.