BERLIN, Oct 8 (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.