AeroVironment buys BlueHalo for $1.4bn

27 Nov 2024, 06:06 by Alun Williams · Electronics Weekly.com

AeroVironment (AV) has announced it is acquiring BlueHalo in an all-stock transaction valuing the company at $4.1 billion. Both are defense technology companies.

AeroVironment says the merger will help create “a more diversified global leader in all-domain defense technologies”. It will give AV entry into additional defence segments, particularly for space systems.

Specifically, its commercial portfolio will include Uncrewed Systems, short and long range Loitering Munitions, Counter UAS, Space Technologies, Electronic Warfare and Cyber capabilities.

BlueHalo

Founded in 2019, BlueHalo’s highlighted achievements include being the first to successfully operationally field directed energy (DE) laser weapon systems (LWS). This is with its LOCUST LWS (in picture). Also, it works in Radio Frequency Counter-Unmanned Aerial Systems (RF C-UAS). It delivered its 1000th system last year with its Titan and Titan-SV systems

In May 2024, it also won a $1.4 billion contract to overhaul U.S. Space Force’s space operations with the BADGER programme (Broad Area Deployable Ground terminal Enabling Resilient communication).

The work will be based on BlueHalo’s proprietary Multi-band Software Defined Antenna (MSDA) technology. This aims to simplify mission operations through agile and re-configurable beamforming tiles.

AV is anticipating the new company to have revenues of $900 million in 2024. And, on a pro forma basis, says AV, the combined company will achieve $1.7 billion in revenue.

AeroVironment

“For over 50 years, AV has pioneered innovative solutions on the battlefield, and today we are poised to usher in the next era of defense technology through our combination with BlueHalo,” said Wahid Nawabi, AeroVironment chairman, president and chief executive officer.

“BlueHalo not only brings key franchises and complementary capabilities, but also a wealth of technologies, diverse customers and exceptional talent to AV. 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 deal, approved by both companies’ board of directors, is expected to complete in the first half of 2025. This is subject to regulatory and AV shareholder approvals.

Priorities

For its part BlueHalo suggested the deal would help “meet emerging defense priorities”. Jonathan Moneymaker, CEO, said:

“BlueHalo was founded to address the most pressing challenges confronting the defense and national security community, from unconventional threats to near-peer adversaries. We have pioneered solutions for drone warfare, distributed autonomy, and the need for more robust and assured access to space in an increasingly contested, crowded and competitive domain. Through these efforts, we have earned our reputation as a trusted partner in defense innovation.”

“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.”

Both companies are based in Arlington, Virginia. This is where the combined company will be at headquartered – at AV’s corporate HQ.

AV expects the transaction to be “accretive to revenue” in the first full fiscal year post-acquisition.

Note BlueHalo is not to be confused with Jeff Bezos’ space company, Blue Origin, a spaceflight services company.