BERLIN (Reuters) -Germany's Helsing will acquire Australian underwater drone maker Blue Ocean, the defence startup said on Wednesday, as it looks to expand its AI-powered autonomous systems in the marine sector.

Helsing, which did not give a transaction value, said that it would integrate Blue Ocean's hardware and manufacturing capabilities with its own artificial intelligence (AI).

The "strategic acquisition" allows Helsing to speed up plans for the development and mass production of autonomous underwater drones to protect countries' maritime domains, it said.

"The need for a smart autonomous mass-approach is clear, and together with Blue Ocean we can build an autonomous glider that provides a big leap forward to conduct underwater ISR (intelligence, surveillance and reconnaissance) for navies," said Helsing maritime general manager Amelia Gould.

The acquisition is subject to court, regulatory and shareholder approval, according to Helsing.

Approval by the authorities is expected in four months, said a Helsing spokesperson.

Helsing joins other European defence companies, currently benefiting from a surge in government funding due to the war in Ukraine, that have shown an interest in the naval sector.

Last month, German defence giant Rheinmetall agreed to buy Luerssen Group's warship division, NVL, while Thyssenkrupp is looking to spin off its TKMS warship division this month to help it unlock its growth potential.