AeroVironment (NASDAQ:AVAV) Enters Agreement to Acquire BlueHalo

AeroVironment, a global leader in defense technology, has recently announced a strategic move to acquire BlueHalo, a Delaware-based company specializing in space technologies, counter unmanned aerial systems (C-UAS), electronic warfare (EW), and cyber solutions. The acquisition is structured as an all-stock transaction and is poised to significantly boost AeroVironment’s position in key defense markets.

The agreement, signed on November 18, 2024, outlines the terms of the merger, which will see BlueHalo becoming a wholly-owned subsidiary of AeroVironment post-closing. Among the highlights of the merger agreement is the issuance of approximately 18.5 million shares of AeroVironment’s common stock to BlueHalo shareholders as part of the consideration.

BlueHalo’s robust portfolio and expertise in critical technology areas including space technologies, C-UAS systems, and EW and cyber solutions will complement AeroVironment’s existing capabilities. The transaction is expected to be accretive to AeroVironment’s revenue, adjusted EBITDA, and non-GAAP EPS in the first full fiscal year following the closing.

Moreover, the strategic alignment of the two companies with key Department of Defense (DoD) priorities and the potential for significant commercial synergies are expected to drive growth and innovation within the defense technology sector. By combining resources and capabilities, the merged entity aims to offer comprehensive, next-generation solutions for defense and national security missions, enabling better delivery and customer support.

The transaction, subject to customary closing conditions and regulatory approvals, is expected to close in the first half of calendar year 2025. The comprehensive merger is set to position AeroVironment as a pure-play global leader in defense technology, poised to address high-growth segments and accelerate progress in critical technological areas essential for national security and defense missions.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read AeroVironment’s 8K filing here.

AeroVironment Company Profile

AeroVironment, Inc designs, develops, produces, delivers, and supports a portfolio of robotic systems and related services for government agencies and businesses in the United States and internationally. It operates through Small Unmanned Aircraft Systems (SUAS), Tactical Missile System (TMS), Medium Unmanned Aircraft Systems (MUAS), and High Altitude Pseudo-Satellite Systems (HAPS) segments.