AeroVironment acquires BlueHalo as part of a 4.1 billion dollar deal. $AVAV (+0.75%)
BlueHalo has a 1.4 billion dollar contract to overhaul the aging military satellite communications ground infrastructure.
WASHINGTON - AeroVironment, a defense contractor specializing in unmanned aerial vehicles, announced Nov. 19 that it plans to acquire BlueHalo, also a defense contractor, in a deal valued at about $4.1 billion.
AeroVironment has a small portfolio of civil space technology, so the BlueHalo deal represents a groundbreaking entry into satellite communications and space-based defense technologies. In 2023, AeroVironment was awarded a $10 million contract from NASA to design and build the flight systems for the Mars Sample Recovery Helicopter. The company was also involved in the design of the Ingenuity helicopter carried by the Perseverance Mars rover to demonstrate the feasibility of robotic flight for planetary exploration.
The acquisition of BlueHalo, which was unanimously approved by the boards of directors of both companies, is expected to close in the first half of 2025, subject to regulatory approval and the approval of AeroVironment's shareholders.
Both AeroVironment and BlueHalo are headquartered in Arlington, Virginia.
BlueHalo, currently owned by private equity firm Arlington Capital Partners, brings expertise in space-based communications, energy guidance, electronic warfare and missile defense technology. A key advantage is the company's $1.4 billion contract with the US Space Force to modernize its satellite communications infrastructure.
The contract provides for the replacement of obsolete parabolic dishes with modern electronically steered phased array antennas that enable the simultaneous tracking of up to 20 satellites - a significant improvement over current systems that can only monitor one satellite at a time.
Following the acquisition, Arlington Capital Partners will retain a significant ownership interest in the combined company.
https://spacenews.com/aerovironment-to-acquire-bluehalo-in-4-1-billion-deal/
https://www.reuters.com/markets/deals/drone-maker-aerovironment-buy-bluehalo-41-bln-deal-2024-11-19/
