AeroVironment (AV) has entered a definitive agreement to acquire BlueHalo in an all-stock transaction valued at approximately $4.1bn.
The deal aims to form a diversified defence technology company, enhancing AV's capabilities in uncrewed systems and advanced technologies.
The merger will combine AV's defence solutions with BlueHalo's emerging technologies, offering a portfolio across domains such as air, land, sea, space, and cyber.
AV chairman, president and CEO Wahid Nawabi said: “BlueHalo not only brings key franchises and complementary capabilities, but also a wealth of technologies, diverse customers and exceptional talent to AV.
“Together, we will drive agile innovation and deliver comprehensive, next-generation solutions designed to redefine the future of defence.”
BlueHalo, a portfolio company of Arlington Capital Partners, specialises in space technologies, counter-uncrewed aircraft systems, directed energy, and electronic warfare, among others.
The acquisition will create synergies in administrative and operational cost savings, integrating BlueHalo's ten flagship solution families and more than 100 patents with AV's expertise.
This union is expected to expand AV's total addressable market, entering new segments such as counter-UAS, directed energy, and cyber technologies.
The acquisition will add BlueHalo’s key programmes, strong customer relationships, and robust backlog, strengthening the company as a sustainable prime defence provider.
This partnership will enhance AV’s ability to provide solutions for Department of Defense (DoD) and allied nations.
BlueHalo CEO Jonathan Moneymaker said: “By uniting with AV, we are building an organisation equipped to meet emerging defence priorities and deliver purpose-driven, state-of-the-art solutions with unmatched speed.
“Together, we remain committed to protecting those who defend us while driving the next generation of transformational advancements in defence technology.”
Jonathan Moneymaker will serve as a strategic advisor post-acquisition.
The transaction, unanimously approved by both companies' boards, is anticipated to close in the first half of 2025, pending regulatory and shareholder approvals.
After the transaction closes, AV shareholders will own about 60.5% and BlueHalo equity holders will own 39.5% of the combined company, subject to closing adjustments.
The combined company will be headquartered in Arlington, Virginia.
In August 2024, AV secured a five-year contract worth nearly $1bn to supply Switchblade loitering munitions to the US Army.
