AeroVironment, a leading developer of unmanned aerial vehicles (UAVs) and defense technologies, announced on Tuesday its intent to acquire BlueHalo, a defense technology company specializing in space systems, directed energy, and electronic warfare.
The deal, valued at $4.1 billion, is an all-stock transaction expected to close in the first half of 2025, pending regulatory approvals and shareholder consent.
Both companies are headquartered in Arlington, Virginia, and the acquisition is expected to transform AeroVironment’s portfolio by integrating BlueHalo’s advanced technologies, including its expertise in satellite communications, missile defense, and counter-uncrewed aerial systems.
BlueHalo also brings a $1.4 billion U.S. Space Force contract for modernizing satellite communication infrastructure, enhancing AeroVironment’s position in the space and defense sectors.
BlueHalo has seen steady revenue growth, generating $886 million in 2023 with projections exceeding $900 million for 2024. The combined company is expected to achieve pro forma revenue exceeding $1.7 billion. The integration will also provide access to BlueHalo’s more than 100 patents and 10 flagship solution families.
Wahid Nawabi, CEO of AeroVironment, called the acquisition a transformative step, highlighting the complementary capabilities and expanded opportunities the merger will provide. Jonathan Moneymaker, CEO of BlueHalo, echoed these sentiments, emphasizing the combined entity’s ability to address emerging defense priorities, including near-peer threats and contested space environments.
