Global defence M&A reaches half-year record as investors race to secure next-generation technologies

London, 15 July 2026: New analysis from global law firm White & Case LLP shows that global defence mergers and acquisitions reached a record high during the first half of 2026 as countries rearm at a pace not seen in a generation and prioritise building digital and technological sovereignty.

The data shows that 42 transactions were completed in H1 2026, a 56% increase from the 27 deals completed during H1 2025. Meanwhile, aggregate deal values remained broadly steady at £2.7bn, compared with £2.8bn in H1 2025.

These figures reflect the unprecedented scale of investment flowing into the defence sector, with government spending at record levels as countries rearm and strengthen sovereign capabilities. Global military expenditure reached an estimated US$2.6 trillion in 2025, according to the International Institute for Strategic Studies, and the trajectory is only set to steepen.

At the heart of this investment boom is defence technology, with capital increasingly flowing not into traditional military hardware but into AI, autonomous systems, drones, digital targeting systems, cyber and electromagnetic capabilities, space technologies and maritime technologies.

Dealmakers are taking note and many recent transactions have centred on advanced defence technologies. Just this week, German defence technology company Helsing raised US$1.8 billion in a funding round that valued the firm at US$18 billion*. Other recent notable transactions in the first half include AE Industrial Partners, which acquired a controlling interest in the Space Propulsion and Power Systems business of L3Harris Technologies for US$845 million; Impulse Space raising US$500 million to build a fleet of ultra-mobile spacecraft; and defence robotics company Allen Control Systems raising a US$200 million Series B funding round valuing it at US$2.2 billion.

Daniel Turgel, Co-head of global law firm White & Case’s Global Technology Industry Group, commented: “Defence technology is now one of the most attractive investment sectors globally, and this record level of M&A activity reflects that shift. With government defence budgets continuing to rise and private capital flowing into the sector at unprecedented levels, we expect investment and dealmaking activity to remain exceptionally strong well beyond 2026.”

White & Case LLP

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