BY Fraser Tennant
In a deal that creates a diversified global leader in all-domain defence technologies, drone manufacturer AeroVironment (AV) is to acquire space and defence engineering company BlueHalo in an all-stock transaction valued at approximately $4.1bn.
Under the terms of the definitive agreement, AV will issue approximately 18.5 million shares of AV common stock to BlueHalo. AV’s shareholders will own approximately 60.5 percent of the combined company following the close of the transaction, with BlueHalo’s equity holders owning approximately 39.5 percent, subject to closing adjustments.
The combined company will bring together complementary capabilities to offer a comprehensive portfolio of high-growth franchises, powered by cutting-edge technology and focused on addressing the most important priorities and needs of the US and its allies around the globe.
It is expected that the companies’ shared culture of agile innovation and mission expertise will enable the combined entity to develop and deliver next-generation technologies that will have significant military value and redefine the next era of US defence technology.
“For over 50 years, AV has pioneered innovative solutions on the battlefield, and today we are poised to usher in the next era of defence technology through our combination with BlueHalo,” said Wahid Nawabi, chairman, president and chief executive of AV. “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 defence,” he continued. “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.”
Following completion of the transaction, Mr Nawabi will be chairman, president and chief executive of the combined company. Jonathan Moneymaker, chief executive of BlueHalo, will serve as a strategic adviser to Mr Nawabi and the combined company’s management team.
“BlueHalo was founded to address the most pressing challenges confronting the defence and national security community, from unconventional threats to near-peer adversaries,” said Mr Moneymaker. “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.”
The transaction, which has been unanimously approved by both companies’ board of directors, is expected to close in the first half of 2025, subject to regulatory and AV shareholder approvals, as well as other customary closing conditions.
Mr Moneymaker concluded: “Together, we remain committed to protecting those who defend us while driving the next generation of transformational advancements in defence technology.”
News: Drone maker AeroVironment seeks lift from $4.1 bln deal for BlueHalo