The financial terms of the transaction involved nearly $49.7 million, which Saab said would have no significant effect on its fiscal 2014 earnings.
Thyssen Krupp Marine Systems AB, formerly known as Kockums, will become a business unit within Saab's Security and Defence Solutions business area under the name Saab Kockums.
"The acquisition is in line with our strategy to expand our offering and strengthen Saab's position in the market for naval systems," said Hakan Buskhe, president and chief executive officer of Saab. "Kockums has a unique offering and a strong local presence in Sweden concerning submarines and warships."
In June, Saab and Sweden's military procurement agency signed a letter of intent regarding the Swedish armed forces' underwater capabilities. Saab said that with this acquisition it is able to "ensure access to the existing knowledge and intellectual properties necessary for continued development, production and maintenance in the underwater sector for both the Swedish and the international markets."