AeroVironment to Acquire BlueHalo in $4.1 Billion All-Stock Deal

On Tuesday, AeroVironment Inc. announced its plan to acquire BlueHalo, a space and defense engineering company, in an all-stock transaction valued at approximately $4.1 billion. This strategic move comes as AeroVironment seeks to expand its portfolio amid escalating geopolitical tensions worldwide.

The deal involves AeroVironment issuing about 18.5 million shares to BlueHalo, a company based in Arlington, Virginia, known for its advancements in drone defense and laser communication technologies. BlueHalo is predominantly owned by the private equity firm Arlington Capital Partners.

According to sources close to the matter, AeroVironment’s shares, which have soared 56% this year, saw a decline of 3.6% in premarket trading following the announcement. The merger is anticipated to be finalized in the first half of the calendar year 2025.

Upon completion of the acquisition, AeroVironment’s shareholders will hold approximately 60.5% of the newly formed company, while BlueHalo’s equity holders will possess around 39.5%. Arlington Capital Partners is expected to maintain a ‘significant’ stake in the combined entity.

The merger is expected to enhance the company’s capabilities in various sectors, including counter-unmanned aerial systems (UAS) which are crucial for defense against drone attacks, as well as in cyber and space technologies.

Wahid Nawabi, the current CEO of AeroVironment, is set to lead the merged company. Meanwhile, Jonathan Moneymaker from BlueHalo will assume the role of a strategic adviser to Nawabi, providing strategic guidance and insight.

The announcement indicates AeroVironment’s strategic positioning to enhance its technological capabilities and market reach, especially in an era where security and defense advancements are increasingly prioritized.

This report was prepared by Utkarsh Shetti in Bengaluru with editing by Sriraj Kalluvila.