BlueHalo, which has significant presence in NM, to be acquired by Virginia-based defense contractor

BlueHalo, a national defense contractor with a large presence in Albuquerque’s Sandia Science & Technology Park, is being acquired by Virginia-based AeroVironment Inc., the companies announced this month.

AeroVironment, also a defense contractor, said the acquisition will come in an all-stock transaction valued at $4.1 billion, according to a news release.

The deal is a major win for AeroVironment, which provides aerial systems for the U.S. military and other defense equipment. BlueHalo’s local operations focus on directed energy and satellite communications systems.

Its presence in Albuquerque is also significant, and it has grown since the company’s founding in 2019.

BlueHalo, also headquartered in Virginia, occupies three buildings spanning 200,000 square feet at the Sandia Science & Technology Park, one of two anchor tenants along with Rocket Lab, BlueHalo’s local Vice President for Operations Steve Conyne told the Journal during an August tour. He said BlueHalo employs around 300 workers in those buildings and another 100 or so work on Kirtland Air Force Base “in different government programs."

The acquisition of BlueHalo is “very good for BlueHalo in New Mexico, and thereby it will be good for the science park,” Sherman McCorkle, president and CEO of Sandia Science & Technology Park Development Corp., told the Journal. “It will bring more resources than what BlueHalo previously had.”

There was a belief inside the defense industry that BlueHalo would be acquired at some point but “perhaps it happened sooner than people thought,” he said.

BlueHalo officials didn’t respond to a request for comment on what the acquisition will mean for its operations in New Mexico.

BlueHalo, however, has seen significant revenue growth in the years since its 2019 founding. It generated $886 million in revenue in 2023, $759 million in 2022 and $660 million in 2021, officials said in the news release. The company is on track to reach $900 million in revenue by the end of the year.

“We are building an organization equipped to meet emerging defense priorities and deliver purpose-driven, state-of-the-art solutions with unmatched speed," BlueHalo CEO Jonathan Moneymaker said in a statement.

“BlueHalo was founded to address the most pressing challenges confronting the defense and national security community, from unconventional threats to near-peer adversaries. We have pioneered solutions for drone warfare, distributed autonomy and the need for more robust and assured access to space in an increasingly contested, crowded and competitive domain,” Moneymaker said in his statement. “Through these efforts, we have earned our reputation as a trusted partner in defense innovation. … Together, we remain committed to protecting those who defend us while driving the next generation of transformational advancements in defense technology.”

Arlington Capital Partners, the majority owner of BlueHalo, will retain a “significant ownership stake” in the combined company, officials said. AeroVironment shareholders will own approximately 60.5% of the company, while BlueHalo’s equity holders will own about 39.5%. The companies said the deal will close in the first half of 2025, which is subject to regulatory and AeroVironment shareholder approvals.

AeroVironment officials said BlueHalo’s portfolio of 10 flagship solution families and more than 100 patents will “seamlessly integrate” with its existing expertise, adding that the “companies’ shared culture of agile innovation and mission expertise will enable the combined entity to develop and deliver next-generation technologies that will have significant military value and redefine the next era of” defense technology. Officials estimate combined revenue of the companies will reach $1.7 billion.

“BlueHalo not only brings key franchises and complementary capabilities, but also a wealth of technologies, diverse customers and exceptional talent to (AeroVironment),” said Wahid Nawabi, chairman, president and CEO of AeroVironment. “Together, we will drive agile innovation and deliver comprehensive, next-generation solutions designed to redefine the future of defense.”