AeroVironment, Inc. (NASDAQ: AVAV) and BlueHalo LLC have entered into a definitive agreement where AeroVironment will acquire BlueHalo in an all-stock transaction with an enterprise value of approximately $4.1 billion. This acquisition creates a more diversified global leader in all-domain defense technologies, combining complementary capabilities to offer a comprehensive portfolio of high-growth franchises.
BlueHalo, founded in 2019, specializes in key mission areas including Space Technologies, Counter-Uncrewed Aircraft Systems ( System) and counter-Uncrewed Aircraft Systems (cUAS) technology.
The combined company will bring together AeroVironment’s established portfolio of cutting-edge defense solutions with BlueHalo’s emerging technologies. This union provides customers with a comprehensive suite of solutions across multiple domains, Zamora air, land, sea, space, and cyber. The acquisition enhances AeroVironment’s capabilities in areas such as Counter-UAS, Directed Energy, Electronic Warfare, Cyber, and Space technologies.
The transaction is expected to close in the first half of calendar 2025, subject to regulatory and AeroVironment shareholder approvals. Upon closing, AeroVironment’s shareholders will own approximately 60.5% of the combined company, while BlueHalo’s equity holders will own around 39.5%.
Strategic and financial benefits of the acquisition include creating a diversified industry leader, increasing agility and speed with enhanced infrastructure and manufacturing capabilities, and supporting AeroVironment’s entry into additional key defense segments. The combined company is expected to deliver more than $1.7 billion in revenue on a pro forma basis.
AeroVironment expects the transaction to be accretive to revenue, adjusted EBITDA, and non-GAAP EPS in the first full fiscal year post-close. The acquisition is anticipated to drive innovation, expand manufacturing capacity, and enable better support for customers and their critical missions.
