Drone maker AeroVironment seeks lift from $4.1 billion deal for BlueHalo
8:58 am Tuesday, November 19th, 2024
(Reuters) -AeroVironment will buy space and defense engineering company BlueHalo in an all-stock deal valued at about $4.1 billion, the companies said on Tuesday, as the drone maker seeks to broaden its portfolio amid rising geopolitical tensions.
The company’s shares, up 56% this year, fell 3.6% in premarket trade.
AeroVironment, which makes the Switchblade loitering munition systems, will issue about 18.5 million shares to Arlington, Virginia-based BlueHalo as part of the deal.
BlueHalo, majority owned by private equity firm Arlington Capital Partners, is a defense tech company that makes drone defense systems and laser communication technology used in space missions.
AeroVironment’s shareholders will own about 60.5% of the combined company post the completion of the deal, which is expected in the first half of calendar 2025.
BlueHalo’s equity holders will own about 39.5%, with Arlington retaining a “significant” stake in the combined company.
The combined company will have a presence in segments including counter-UAS systems that help defend against drone strikes, alongside cyber and space technologies.
AeroVironment’s CEO Wahid Nawabi will lead the combined company, while BlueHalo’s Jonathan Moneymaker will serve as a strategic adviser to Nawabi.
(Reporting by Utkarsh Shetti in Bengaluru; Editing by Sriraj Kalluvila)
