AeroVironment acquired Intelligent Systems Group (ISG) of Progeny Systems Corporation for $30 million (plus up to $6 million earn-out), a transaction completed in February 2021, structured as Asset purchase: $30 million cash at closing plus an earn-out of up to $6 million over three years tied to revenue targets (all three annual targets were subsequently achieved).
Intelligent Systems Group (ISG) of Progeny Systems Corporation operates in Artificial intelligence / autonomy (customer-funded R&D), is based in Manassas, Virginia, United States, had revenue of about More than $10 million in fiscal 2020 revenue. AeroVironment purchased the assets of, and assumed certain liabilities of, the Intelligent Systems Group (ISG) of Progeny Systems Corporation, a Manassas, Virginia-based developer of AI-enabled computer vision, machine learning and perceptive-autonomy technologies for U.S. government customers. Founded in 2006, ISG had more than $10 million in fiscal 2020 revenue and 40 employees. AeroVironment paid a $30 million base cash purchase price plus an earn-out of up to $6 million over three years; the first-year target released $2 million in fiscal 2022 and the second- and third-year targets released a further $2 million each in fiscal 2023.
The acquisition accelerated AeroVironment's artificial intelligence and autonomy roadmap, increased customer-funded R&D revenue, deepened relationships with key U.S. government customers, and broadened the company's advanced robotic-systems engineering services.
A specialized AI/autonomy team with deep U.S. Navy, Marine Corps, Special Operations Command and Air Force relationships and customer-funded R&D revenue. AeroVironment Artificial Intelligence Innovation Center (merged with the MacCready Works Advanced Solutions team) The Manassas facility became AeroVironment's Artificial Intelligence Innovation Center; all 40 ISG employees continued in their roles and merged with the MacCready Works Advanced Solutions team.
Acquiring ISG will enhance the intelligence of our growing, multi-domain robotic systems portfolio, increase customer-funded research and development revenue and deepen our relationships with strategically important customers.Wahid Nawabi, President and CEO, AeroVironment
The people, skills, and technologies that each company has are extremely complementary and will bring big benefits to the warfighter.Walt Kitonis, CEO, Progeny Systems
Advisory firms were not disclosed for this transaction.