AeroVironment, a prominent drone manufacturer, announced plans on **Tuesday, October 3, 2023**, to acquire BlueHalo, a company recognized for its drone swarm and counter-drone technology, for approximately **$4.1 billion** in an all-stock transaction.
In a joint statement, the companies emphasized that the acquisition will establish a diversified Defense Tech entity with a complementary portfolio focusing on Uncrewed Systems, loitering munitions, Counter UAS, Space Technologies, Electronic Warfare, and Cyber solutions, all enhanced by AI and Autonomy. They believe this merger will foster innovation, increase manufacturing capacity, and better support their customers’ vital missions.
BlueHalo boasts a portfolio of **10 flagship solution families** and holds over **100 patents**. AeroVironment’s CEO, **Wahid Nawabi**, remarked, “For over 50 years, AV has pioneered innovative solutions on the battlefield… today we are poised to usher in the next era of defense technology through our combination with BlueHalo.”
BlueHalo’s CEO, **Jonathan Moneymaker**, noted that the company has made significant strides in drone warfare and aims to better meet defense priorities through the merger. AeroVironment is known for supplying unmanned aircraft systems and loitering munitions to the U.S. military, including support for Ukraine against Russian aggression with systems like the Switchblade loitering munition, Puma UAS, and Jump 20 tactical UAS.
Recently, BlueHalo has gained traction in the defense market, securing contracts such as a 2022 deal with the U.S. Army for offensive swarm capabilities and a multibillion-dollar contract with the U.S. Space Force for its BADGER system. The company has also delivered over **1,000 Titan counter-UAS systems** and provided directed energy solutions for combat vehicles.
In financial terms, BlueHalo recorded roughly **$886 million** in revenue for 2023 and projects **$900 million** for 2024, with a backlog nearing **$600 million** and several billion-dollar opportunities ahead. The merged companies anticipate total revenue exceeding **$1.7 billion**.
The merger is expected to conclude in the **first half of calendar year 2025**, with the combined entity based in **Arlington, Virginia**, where AeroVironment currently has its headquarters. Nawabi will continue as president and CEO of the new company, while Moneymaker will serve as a strategic adviser. **Arlington Capital Partners**, the majority owner of BlueHalo, will retain a significant stake in the merged organization.
