Northrop Grumman's Sperry Marine business unit has signed a memorandum of understanding with Terma to collaborate in pursuing business in naval markets.
As part of the latest development, both companies will initially focus on radars and navigation segments.
Northrop Grumman Sperry Marine global business development director Jan Hansen said: "This agreement will bring significant value to the customer, specifically by incorporating near, low-level air and surface surveillance capability to our navigation suite, in addition to out-of-the-box compliance with International Maritime Organization requirements.
"We expect our collaborative working relationship with Terma, with its 60 years of experience in the radar business, to bring mutually beneficial opportunities to both of our companies, as well as exciting new capabilities to the end user."
Sperry Marine's new surveillance mode that was developed for its VisionMaster FT radar family can interface with Terma's Scanter 6002 surveillance radar, the company stated.
Terma radar sales director Lars Weiss Laursen said: "The partnership between Terma and Sperry Marine has developed positively over the past years and Terma sees a strategic advantage in taking the partnership further.
"The Scanter 6002 is an affordable and easily integrable system that can detect small targets in low visibility, harsh weather conditions."
Recently, Sperry Marine secured a contract from Korea's Daewoo Shipbuilding and Marine Engineering shipyard (DSME) to deliver full integrated bridge systems (IBS) to the Royal Thai Navy's future frigates.
In addition, the unit received an order to deliver X and S-band radars, as well as a VisionMaster electronic chart display and information system (FT ECDIS) for Thai Navy's patrol boat.
Image: Terma CEO and president Jens Maaløe and Northrop Grumman Sperry Marine managing director Jeanne Usher at the signing ceremony at DSEI 2015. Photo: courtesy of Terma.