AeroVironment, Inc. has entered into a definitive agreement to acquire BlueHalo in an all-stock transaction valued at $4.1 billion.
The combined company will integrate capabilities to deliver a comprehensive portfolio of high-growth franchises, driven by cutting-edge technology and focused on key priorities for the nation and its allies.
An Arlington Capital Partners portfolio company, BlueHalo delivers capabilities in space technologies, counter-uncrewed aircraft systems, directed energy, electronic warfare, cyber and artificial intelligence. The company projects over $900 million in revenue for 2024.
The acquisition will form a diversified defense tech company with a portfolio spanning uncrewed systems, short- and long-range loitering munitions, counter-UAS, space technologies, electronic warfare, cyber, AI and autonomy.
The combined companies will drive innovation, expand manufacturing capacity and enhance support for critical customer missions.
BlueHalo was established to tackle critical challenges in defense and national security, addressing both unconventional threats and near-peer adversaries, and has developed pioneering solutions for drone warfare, distributed autonomy, and assured access to space in a contested and competitive domain, said BlueHalo CEO Jonathan Moneymaker.
“Through these efforts, we have earned our reputation as a trusted partner in defense innovation,” he said. “By uniting with AV, we are building an organization equipped to meet emerging defense 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 defense technology.”
The companies share a culture of agile innovation and mission expertise, enabling the combined entity to develop and deliver next-generation technologies with high military value. The combined company is projected to generate over $1.7 billion in revenue, according to the companies.
AeroVironment has pioneered battlefield innovations for over 50 years and is now set to lead the next era of defense technology with BlueHalo, said Wahid Nawabi, AeroVironment chairman, president and CEO.
“BlueHalo not only brings key franchises and complementary capabilities, but also a wealth of technologies, diverse customers and exceptional talent to AV.,” he said. “Together, we will drive agile innovation and deliver comprehensive, next-generation solutions designed to redefine the future of defense. We are thrilled to welcome the talented BlueHalo team as we unite our strengths, expand our global impact and accelerate growth and value creation for AV shareholders.”
The transaction, unanimously approved by both companies’ boards, is expected to close in the first half of 2025. AeroVironment will issue about 18.5 million shares of its common stock to BlueHalo under the merger agreement.
After the transaction is completed, Nawabi will be chairman, president and CEO of the combined company. Moneymaker will serve as a strategic advisor to Nawabi and the combined company management team. The company will be headquartered in Arlington, Virginia, at AeroVironment’s corporate headquarters.