Elbit Systems Acquires Full Control of UK UAV Joint Venture UTACS as Thales Exits Sector

Elbit Systems, led by CEO Bezalel Machlis, has acquired Thales’ 49% stake in their joint venture UTACS, taking full ownership of the UK-based unmanned aerial vehicle (UAV) company. The stake was purchased for a nominal sum, following Thales’ strategic decision to exit the UAV sector.

UTACS was established in 2005 by Elbit Systems (51%) and France’s Thales (49%) to execute the Watchkeeper program — the development, operation and maintenance of the British Army’s UAV fleet. The project, valued at approximately $1.1 billion, is based on Elbit’s Hermes 450 platform integrated with Thales sensors.

Two Decades of Operations for UK 

Over the past 20 years, UTACS has delivered dozens of advanced tactical UAV systems to the British Army and international customers, including the United Nations and NATO member states. The Watchkeeper program is scheduled to conclude in 2027.

The British Army is currently preparing a new tender for its next-generation UAV capability, which will take effect from 2027 onwards. The tender is expected to reflect lessons learned from recent conflicts, including the Russia–Ukraine war and the war in Gaza, as well as rapid advances in unmanned systems technology.

Strategic Importance for Elbit’s UK Operations

Elbit Systems completed the acquisition after securing all required governmental and regulatory approvals. The company said full ownership of UTACS will strengthen its position in the UK as a center of excellence for unmanned platform technologies, supporting European and NATO defense requirements.

According to Elbit, sole ownership will enable the company to further develop UTACS as a leading UK and regional hub for the design, development and long-term support of advanced UAV systems, while leveraging Elbit Systems’ global technological capabilities in the rapidly expanding unmanned systems market.