Leonardo and Hensoldt have agreed to provide Mode-5 Identification Friend or Foe (IFF) systems to customers worldwide.
Using IFF technology, users will be able to electronically differentiate between allied forces and potential threats.
The systems send an interrogation signal to unidentified platforms and verify the automatic responses that are sent back, Leonardo stated.
Ground, air and naval crews can use the IFF technology to identify their allies and avoid ‘friendly fire’ incidents.
The Mode-5 is said to use the latest cryptographic techniques to avoid the threat of deception by adversaries.
Both the companies have been already selected by the UK Ministry of Defence (MoD) to upgrade IFF systems on more than 400 land, sea and air vehicles.
Nato nations are mandated to switch to Mode-5 IFF systems by 2020.
The nations seeking to interoperate with Nato forces will also request the companies upgrade their existing systems to the Mode-5 standard.
Leonardo has already provided Mode-5 IFF for the Royal Navy’s Queen Elizabeth Class aircraft carriers and the Royal Air Force’s Eurofighter Typhoons in the UK, as well as Italy's NH90 helicopter.
The company provides Mode-5 IFF technology for the Saab Gripen-E fighter and other worldwide armed forces.
Through the partnership, the companies will look for potential customers in Europe, the Middle East and Far-Eastern nations.