Elbit Systems in consortium for $1.5b UK UAV program

Elbit Systems will supply its Hermes 180 and Hermes 450 UAVs for Britain’s Watchkeeper battlefield imagery and intelligence program.

The UK Ministry of Defence has decided to procure unmanned aerial vehicles (UAVs) from Boeing (NYSE:BA), Thales Group (Paris:TCFP) and Elbit Systems (Nasdaq:ESLT; TASE:ESLT) for its Watchkeeper battlefield imagery and intelligence program, top Israeli defense industry officials told “Globes”. The program is estimated at £800 million ($1.5 billion).
The UK Ministry of Defence and tender winners are expected to announce the win during this week’s Farnborough International Exhibition and Flying Display. No response from Elbit Systems was available by webposting.

The Watchkeeper tender is the largest UAV tender published recently. Elbit Systems will supply its Hermes 180 and Hermes 450 UAVs for tactical intelligence gathering and command and control to the British Army.

Under its collaboration with Boeing and Thales, Elbit Systems will build the platforms, apparently in the UK, and Boeing and Thales will provide the systems and payloads. Thales will be the chief contractor for the Watchkeeper program.

Northrop Grumman (NYSE:NOC), in partnership with Israel Aircraft Industries (IAI), reached the final stage in the Watchkeeper tender. IAI would have supplied the payloads (day and night cameras), built by its Tamam Optronics and Navigation division, and the production technology for its Ranger UAV platform to RUAG of Swizterland for assembly.