Drone manufacturer AeroVironment is to acquire BlueHalo, a defence and space technology firm primarily owned by private equity firm Arlington Capital Partners, in an all-stock deal valued at approximately $4.1bn, according to a report by Reuters.
The acquisition aims to diversify AeroVironment’s offerings amid growing global security concerns.
Despite a strong performance this year, with shares rising 56%, AeroVironment’s stock dipped 3.6% in premarket trading following the announcement.
Under the terms of the agreement, AeroVironment will issue approximately 18.5 million shares to BlueHalo, a Virginia-based company.
Once the deal closes, AeroVironment shareholders will own 60.5% of the combined entity, while BlueHalo’s equity holders, including Arlington, will retain 39.5% ownership. Arlington will also maintain a “significant” stake in the new company.
The acquisition is expected to be finalised in the first half of 2025.
The merger will create a company with a broadened presence in critical defence segments, including: Counter-Unmanned Aerial Systems (Counter-UAS) – technologies to mitigate drone threats – and space technologies, including advanced laser communication systems.
Post-merger, AeroVironment’s CEO Wahid Nawabi will lead the combined organisation, while Jonathan Moneymaker, CEO of BlueHalo, will transition to a role as a strategic adviser to Nawabi.
