AeroVironment acquires BlueHalo LLC

AeroVironment acquired BlueHalo LLC for Approximately $4.1 billion (enterprise value, all-stock), a transaction completed in May 2025, structured as All-stock: enterprise value of ~$4.1 billion; AeroVironment issued ~18.5 million shares to BlueHalo. Post-close, AeroVironment shareholders owned ~60.5% and BlueHalo equity holders ~39.5% of the combined company; BlueHalo holders entered lock-ups (40% releasing 12 months post-close, the remaining 60% at 18 and 24 months).. The deal was a Merger (business combination).

BlueHalo LLC operates in All-domain defense technology (space, counter-UAS, directed energy, electronic warfare, cyber), is based in Arlington, Virginia, United States (national footprint), had revenue of about More than $900 million estimated 2024 revenue (approximately $886 million in 2023). AeroVironment merged with BlueHalo LLC, an Arlington Capital Partners portfolio company founded in 2019, in an all-stock transaction with an enterprise value of approximately $4.1 billion. BlueHalo provides space technologies, counter-uncrewed aircraft systems (cUAS), directed energy, electronic warfare, cyber, AI and other emerging technologies, with programs including its LOCUST laser weapon system, the BADGER space program and Titan RF counter-UAS systems. BlueHalo estimated more than $900 million of 2024 revenue with nearly $600 million of funded backlog. The combination created a diversified defense-technology company expected to deliver more than $1.7 billion of pro forma revenue and roughly 3,750 employees.

BlueHalo let AeroVironment enter high-growth adjacent segments (counter-UAS, directed energy, electronic warfare, cyber and space), diversify its customer, product and revenue mix, expand manufacturing capacity and geographic footprint, and build a scaled, all-domain 'Defense Tech' prime.

An emerging, high-growth all-domain defense-tech platform with programs of record, nearly $600 million of funded backlog and complementary space/cUAS/directed-energy/EW/cyber capabilities that roughly doubled AeroVironment's scale. Expected to be primarily administrative and operational cost savings and shared best practices; accretive to revenue, adjusted EBITDA and non-GAAP EPS in the first full fiscal year post-close. Combined company reorganized into two segments: Autonomous Systems, and Space, Cyber and Directed Energy On closing (May 1, 2025) AeroVironment reorganized into two segments — Autonomous Systems (led by Trace Stevenson) and Space, Cyber and Directed Energy (led by former BlueHalo COO Trip Ferguson) — with more than 3,750 employees; two Arlington Capital Partners directors (David Wodlinger and Henry Albers) joined the board.

Advisory firms were not disclosed for this transaction.