AeroVironment acquired Arcturus UAV, Inc. for $405 million (approximately $422.6 million net of cash acquired at closing), a transaction completed in February 2021, structured as Cash-and-stock: total purchase price of ~$405 million ($355 million cash and $50 million in AeroVironment stock); cash portion funded with ~$150 million cash on hand plus a $200 million term loan. At closing the company paid ~$422.6 million net of cash, including ~$72.4 million of restricted stock..
Arcturus UAV, Inc. operates in Medium unmanned aircraft systems (Group 2 and 3 UAS), is based in Petaluma, California, United States, had revenue of about Topline growth exceeding 20% in each of its last two fiscal years (revenue not specifically disclosed). AeroVironment acquired Arcturus UAV, Inc., a Petaluma, California-based provider of Group 2 and Group 3 unmanned aircraft systems and services. Founded in 2004 with about 270 employees, Arcturus designs and manufactures medium-endurance UAS such as the JUMP-20 VTOL system and the catapult-launched T-20, and provides contractor-owned, contractor-operated (COCO) services. It was a leading supplier to U.S. Special Operations Command's MEUAS programs and one of four awardees on the U.S. Army's Future Tactical UAS (FTUAS) program. The total purchase price was $405 million in cash and stock; AeroVironment financed part of the cash consideration with a new $200 million term loan and a $100 million revolver from Bank of America.
The deal expanded AeroVironment into the larger, higher-value Group 2 and 3 UAS segments, diversified its programs, increased key customer penetration (USSOCOM MEUAS and Army FTUAS), and gave it a complete Group 1-3 UAS, tactical missile and unmanned-ground-vehicle portfolio.
A fast-growing Group 2/3 UAS leader with strategically important USSOCOM MEUAS and Army FTUAS positions, priced at roughly 11x LTM adjusted EBITDA net of tax benefits. Medium UAS (MUAS) segment; Arcturus operated as a wholly owned subsidiary Arcturus contributed about $15.8 million of revenue between the February 19, 2021 close and AeroVironment's April 30, 2021 fiscal year-end; adjustment and indemnification escrows were released to the sellers during fiscal 2022.
We are excited about the opportunities for value creation through our acquisition of Arcturus UAV, which will enable us to accelerate our growth strategy and expand our reach into the more valuable Group 2 and 3 UAS segments.Wahid Nawabi, President and CEO, AeroVironment
AeroVironment's depth of experience in UAS and tactical missile systems, international presence, and impressive team is a natural fit for Arcturus UAV, and will create substantial opportunities to build on our strong momentum.D'Milo Hallerberg, President and CEO, Arcturus UAV
Advisory firms were not disclosed for this transaction.