AeroVironment to Acquire BlueHalo in $4.1 Billion All-Stock Deal, Expanding Defense Tech Capabilities

AeroVironment, a leading drone and uncrewed systems company based in Arlington, Virginia, has announced a significant expansion of its capabilities through the acquisition of BlueHalo, a portfolio company of Arlington Capital Partners. The deal, valued at approximately $4.1 billion, is structured as an all-stock transaction.

The merger aims to create a diversified defense technology leader by combining AeroVironment’s expertise in uncrewed systems and loitering munitions with BlueHalo’s advanced capabilities in space technologies, counter-UAS systems, directed energy weapons, and electronic warfare. BlueHalo, known for its industry-leading capabilities in areas such as space, C-UAS, autonomous systems, electronic warfare, and AI/ML, is expected to contribute over $900 million in revenues for 2024 and has a funded backlog of nearly $600 million.

The combined entity is projected to generate more than $1.7 billion in revenue, positioning it as a major player in next-generation defense technologies. The integration will enhance R&D capabilities, leveraging BlueHalo’s 100+ patents and 10 flagship solution families. This merger is expected to strengthen AeroVironment’s multi-domain capabilities across air, land, sea, space, and cyber domains.

Post-transaction, AeroVironment shareholders will own approximately 60.5% of the combined company, while BlueHalo equity holders will retain 39.5%. The deal is anticipated to close in the first half of 2025.

This acquisition represents a transformative step for AeroVironment, significantly expanding its market presence and technological capabilities. The companies will host a conference call to discuss the details of the merger and its implications for the future of defense technology.