Collective Defence Acquires Asterion in $1 Billion Deal Combining Cybersecurity and Counter-Drone Technology

Transaction creates Luxembourg’s first defense unicorn and brings together cyber defense and combat-tested counter-UAS capabilitie

Collective Defence has announced its acquisition of counter-drone company Asterion in a transaction that values the combined business at more than $1 billion. The deal creates Luxembourg’s first defense unicorn and establishes one of Europe’s largest privately held defense technology companies.

The acquisition combines Collective Defence’s cybersecurity and threat intelligence capabilities with Asterion’s counter-unmanned aircraft systems (C-UAS) technology. The companies say the move reflects the growing overlap between cyber defense and protection against drone threats.

The transaction was led by investment firm C5 Capital and supported by strategic sovereign investors. It remains subject to regulatory approvals before closing.

Bringing Cyber and Counter-Drone Capabilities Together

Collective Defence is headquartered in Luxembourg and operates across cybersecurity, threat intelligence, and security operations. The company was formed through the integration of cybersecurity firms ITC Secure and IronNet.

Asterion provides counter-drone technology that includes radio-frequency detection, AI-enabled tracking, and both kinetic and non-kinetic methods for stopping hostile drones. The company has deployed its systems in Ukraine and the Middle East.

The deal reflects a broader trend in modern defense. Drones increasingly depend on software, communications links, and networked systems. As a result, cyber vulnerabilities and physical airspace threats have become closely connected.

According to the companies, the combined platform will offer customers a unified system that includes cyber threat detection, drone detection and tracking, electronic and kinetic countermeasures, and a shared command-and-control layer.

Arno Robbertse, Chief Executive Officer of Collective Defence, said:

“Today’s announcement closes the gap between cyber defence and physical airspace defence. Our customers — governments, energy operators and critical infrastructure owners — face one threat surface, not two. Asterion’s combat record in Ukraine and the Gulf, combined with our cyber capabilities, provides one security architecture, one operating picture and one accountable partner.”

Combat Experience Shapes Product Development

The companies emphasized Asterion’s operational deployments in Ukraine and the Middle East. Those conflicts have highlighted both the effectiveness of drones and the need for layered defenses against them.

Recent conflicts have also demonstrated that counter-drone systems must address more than the aircraft themselves. Operators now face threats that include electronic warfare, GPS disruption, communications attacks, and increasingly autonomous systems.

According to the announcement, Asterion’s systems have demonstrated the ability to detect, classify, and counter hostile drones in contested electromagnetic environments. The company says its technology has been tested against threats including Shahed-series loitering munitions and first-person-view (FPV) drones.

The company reports contract awards exceeding €100 million and says it continues to expand its pipeline in Europe and the Middle East.

General Sir Graeme Lamb KBE CMG DSO, former Director of UK Special Forces and Senior Advisor to Collective Defence, commented on the changing nature of modern warfare:

“The very nature of war may have changed. Autonomous systems, drones, digital networks operating at machine speed, bottomless data, cyber and artificial intelligence are rewriting the economics of attack and defence. What we are seeing in Ukraine confirms a hard truth: the side that fuses electronic, cyber and kinetic effects into a single operating picture owns the initiative. Collective Defence and Asterion together are building precisely that capability – and they are building it now, at the speed the threat demands.”

A European Defense Technology Platform

The acquisition comes as European governments increase investment in defense technology and seek to strengthen domestic industrial capabilities. The European Commission’s ReArm Europe Plan and Readiness 2030 initiatives have placed particular focus on cybersecurity, artificial intelligence, and advanced defense systems.

Luxembourg has also increased its defense profile in recent years. The country hosts the NATO Support and Procurement Agency (NSPA) and has committed to raising defense spending to 2% of GDP. Its defense strategy highlights innovation, dual-use technologies, and participation in allied supply chains.

Andre Pienaar, Founder and Chief Executive Officer of C5 Capital, said the transaction reflects the growing need to protect both physical infrastructure and digital systems:

“That is why we have brought cyber and counter-drone defence together in Collective Defence. Its mission is to defend the people and the systems that cannot defend themselves, because today the threat to a network and the threat to a neighbourhood are one and the same. Building that capability as Luxembourg’s first defence unicorn, anchored in a NATO and EU member state, is exactly what European sovereign capability should look like.”

For the drone industry, the deal highlights a significant shift in how governments view counter-UAS technology. Counter-drone systems are increasingly becoming part of a larger security architecture that includes cybersecurity, electronic warfare, communications resilience, and command-and-control systems. As drones play a larger role in both military and civilian operations, the ability to protect airspace and digital infrastructure through a single integrated platform is becoming an important part of modern defense planning.

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