Elbit Systems UK has taken full ownership of the company established to deliver the British Army’s fleet of Watchkeeper tactical uncrewed aerial vehicles (UAVs).

Announced on 22 January, the full acquisition of UAV Tactical Systems (UTacS) “follows the receipt of all required regulatory and [UK] government approvals”, Elbit says.

Elbit had until this point held a 51% stake in the UTacS venture, with the balance owned by Thales UK.

“Over nearly two decades, UTacS has supplied dozens of advanced tactical UAS to the British Army as well as to international customers, including the United Nations and NATO member countries,” Elbit says.

“Full ownership will allow Elbit Systems UK to further develop UTacS as a leading and innovative British and regional hub for the design, development and support of advanced UAS,” it adds.

“The company will focus on serving the needs of European and NATO customers, continuing to deliver its existing programmes while retaining its highly skilled British workforce and engineering excellence.”

An extensive redevelopment of Elbit’s Israel-produced Hermes 450 airframe acquired with advanced sensors and supporting ground elements, the British Army’s Watchkeeper system entered service in 2010, attaining full operational capability declared in 2018.

The UK Ministry of Defence (MoD) in November 2024 announced that it would retire its intelligence, surveillance, target acquisition and reconnaissance-tasked Watchkeeper capability – which at that time included 46 air vehicles – in 2025. Defence secretary John Healey described the equipment as “14-year-old army drones that technology has overtaken”.

However, with no replacement yet acquired, the MoD has retained a limited operational capability with the system, while it seeks a successor via Project Corvus. This could see some Watchkeepers retained for use until into 2027.

UTacS also received a contract to supply NATO nation Romania its export-standard Watchkeeper X system, with that deal signed in mid-2023.

“This acquisition [of UTacS] further strengthens our engineering and manufacturing capabilities across the continent, reinforcing our long‑term commitment to the UK and the wider European defence industry,” says Elbit chief executive Bezhalel Machlis.