AeroVironment (AV) has announced its acquisition of BlueHalo, with the purchase valued at approximately $4.1 billion. The deal, expected to close in the first half of 2025 pending regulatory and shareholder approvals, will unite the two companies into a diversified defence technology provider with significant capabilities in C-UAS and other emerging defence markets.
The acquisition aligns AV’s expertise in unmanned systems and loitering munitions with BlueHalo’s advanced solutions in C-UAS, directed energy and electronic warfare. BlueHalo is known for its Titan and Titan-SV radio frequency C-UAS systems and its LOCUST laser weapon system.
Focus on C-UAS capabilities
BlueHalo has adopted a strong focus on counter-drone technology, delivering its 1,000th C-UAS system in 2023. These systems, designed to detect, track and neutralise aerial threats, will complement AV’s existing portfolio. AV’s acquisition of BlueHalo strengthens its position in the growing C-UAS market, a critical focus area as drone threats continue to evolve.
“BlueHalo not only brings key franchises and complementary capabilities, but also a wealth of technologies, diverse customers and exceptional talent to AV,” said Wahid Nawabi, AV chairman, president and CEO. “Together, we will drive agile innovation and deliver comprehensive, next-generation solutions designed to redefine the future of defence.”
Jonathan Moneymaker, CEO of BlueHalo, noted:
“BlueHalo was founded to address the most pressing challenges confronting the defence and national security community. By uniting with AV, we are building an organisation equipped to meet emerging defence priorities and deliver purpose-driven, state-of-the-art solutions with unmatched speed.”
The combined entity expects to achieve over $1.7 billion in revenue, with BlueHalo contributing a robust funded backlog of $600 million and projected 2024 revenues exceeding $900 million.
The companies aim to create a more comprehensive defence portfolio while leveraging synergies such as shared manufacturing and operational efficiencies. The merger is also expected to accelerate innovation and expand the geographical footprint of both organisations.
Governance and leadership
Following the merger, AV CEO Wahid Nawabi will lead the combined entity, headquartered in Arlington, Virginia. Jonathan Moneymaker will act as a strategic advisor. Arlington Capital Partners, the majority owner of BlueHalo, will retain a significant ownership stake and have board representation.
