AeroVironment acquires BlueHalo for $4.1 billion to develop defense technology

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AeroVironment’s JUMP 20 unmanned aircraft system is equipped with advanced intelligence, surveillance and reconnaissance capabilities. | Source: AeroVironment

AeroVironment, a defense contractor based in Arlington, Virginia, has agreed to acquire BlueHalo in an all-stock deal valued at approximately $4.1 billion. BlueHalo is best known for its drone swarm and counter-drone technology. The transaction, approved by the boards of directors of both companies, is expected to close in the first half of 2025.

AeroVironment said the acquisition of BlueHalo will create a next-generation defense technology company operating in multiple domains, including air, land, sea, space and cyberspace. It said BlueHalo’s product portfolio and 100 patents will complement its existing expertise in the design, development, production, training and maintenance of unmanned systems, loitering munitions and advanced technologies.

BlueHalo was founded as a purpose-built platform to provide capabilities in several key mission areas: space technology, unmanned aircraft systems (cUAS), directed energy, electronic and cyber warfare, artificial intelligence and other emerging technologies, including unmanned underwater vehicles. UAV).

BlueHalo estimates it will generate more than $900 million in revenue in 2024, in addition to a funded portfolio of nearly $600 million and a portfolio of multiple billion-dollar opportunities. BlueHalo generated approximately $886 million in revenue in 2023, up from $759 million and $660 million in 2022 and 2021, respectively.

According to preliminary estimates, the combined company’s revenue will be more than $1.7 billion.

“For more than 50 years, (AeroVironment) has pioneered innovative solutions on the battlefield, and today we are poised to usher in the next era of defense technology through our combination with BlueHalo,” said Waheed Nawabi, chairman, president and CEO of AeroVironment. .

“BlueHalo offers (AeroVironment) not only key franchises and complementary capabilities, but also a wealth of technology, diverse clients and exceptional talent. Together, we will drive agile innovation and deliver next-generation end-to-end solutions designed to redefine the future of defense. We are thrilled to welcome BlueHalo’s talented team as we combine our strengths, expand our global footprint and accelerate growth and value creation for AV shareholders,” he continued.

Under the terms of the merger agreement, AeroVironment will issue approximately 18.5 million shares of common stock to BlueHalo. Upon closing of the transaction, AeroVironment shareholders will own approximately 60.5% of the combined company and BlueHalo will own approximately 39.5%. Arlington Capital Partners, the investment firm that is BlueHalo’s majority owner, will retain a significant stake in the combined company.

Nawabi will become chairman, president and chief executive officer of the combined company. Jonathan Moneymaker, CEO of BlueHalo, will serve as a strategic advisor to the combined company.