Leading drone manufacturer AeroVironment on Tuesday announced plans to acquire BlueHalo, a company known for its drone fleet and counter-drone technology, in an all-stock deal for approximately $4.1 billion.
“With the acquisition of BlueHalo, we now have a highly complementary and differentiated portfolio of solutions in unmanned systems, short-range and long-range loitering weapons, counter-UAS, space technology, electronic warfare and cyber, leveraging AI and autonomy. ”, according to a joint statement from the two companies. “This combination will drive innovation and expand our manufacturing capabilities to better support our customers and their critical missions.”
BlueHalo’s portfolio consists of “10 flagship solution families” and more than 100 patents, the statement said.
“For more than 50 years, AV has pioneered innovative solutions on the battlefield, and today, through our combination with BlueHalo, we are poised to usher in the next era of defense technology,” said AV Chief Executive Officer. CEO Wahid Nawabi said in a statement.
BlueHalo CEO Jonathan Moneymaker said BlueHalo is “a solution to drone warfare, decentralized autonomy, and the need for more robust and secure access to space in an increasingly competitive, crowded and competitive space.” “We have pioneered this,” he said. “By working with AV, we are building an organization that can address emerging defense priorities and deliver purpose-driven, cutting-edge solutions at unparalleled speed.”
AeroVironment provides numerous unmanned aircraft systems and loitering weapons to the U.S. military and other customers. Much of the company’s capabilities, including the Switchblade loitering weapon, Puma UAS, and Jump 20 tactical UAS, are being sent to Ukraine to assist in the fight to repel the Russian invasion.
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BlueHalo has become better known in the defense field in recent years, with a contract with the U.S. Army to provide strike group attack capabilities for evaluation purposes in 2022, and dozens of contracts with the U.S. Space Force for the BADGER system, an adaptive phased array. He has won billion dollar contracts. product.
The company also provides directed energy versus unmanned aircraft solutions for combat vehicles and has delivered more than 1,000 Titan versus UAS systems to customers.
BlueHalo had approximately $886 million in revenue in 2023 and estimates it will generate $900 million in revenue in 2024, with nearly $600 million in backlog and several A billion-dollar opportunity is on the horizon.
Together, the combined businesses are expected to generate more than $1.7 billion in revenue, according to a statement.
The merger is expected to close in the first half of the 2025 calendar year, the statement said.
The combined company will be headquartered in Arlington, Virginia, where AV is headquartered.
Mr. Nawabi will become president and CEO of the combined company, while Mr. Moneymaker will remain as a strategic advisor to Mr. Nawabi and the company’s management team, the statement said.
Blue Halo’s majority shareholder, investment firm Arlington Capital Partners, will maintain a “significant” ownership stake in the company.
Jen Judson is an award-winning journalist who covers ground warfare for Defense News. She also worked for Politico and Inside Defense. She holds a Master of Science in Journalism from Boston University and a Bachelor of Arts from Kenyon College.