Strategic Acquisition Strengthens AV's Manufacturing Capabilities in Electric and Unmanned Aviation

AeroVironment, Inc. ("AV" or the "Company") (NASDAQ:AVAV) today announced that it has acquired Empirical Systems Aerospace, Inc. ("ESAero"), a leading producer of unmanned aircraft systems (UAS) and advanced air mobility (AAM) platforms.

ESAero is recognized for its deep engineering expertise, innovative electric and hybrid propulsion capabilities, rapid aerospace prototyping, and AS9100 Certified UAS manufacturing. Operating out of a 32,000 sq. ft. design and prototyping facility and a 53,000 sq. ft. manufacturing facility in San Luis Obispo, CA, with multiple integration and test facilities in the area, ESAero has expanded its operations to support system testing and advanced product development. ESAero's culture of technical rigor and rapid innovation also aligns with AV's mission-focused approach and commitment to developing mission-critical solutions tailored to U.S. Department of War requirements.

Transaction Details

Under the terms of the agreement, AV acquired ESAero in a transaction valued at approximately $200 million, with approximately $160 million in stock and the remainder in cash, subject to post-closing adjustments and holdbacks. The transaction is expected to be accretive to adjusted EBITDA in the first year following the close.

ESAero will operate as a subsidiary of AV, reporting into AV's Precision Strike and Defense Systems group, under the Loitering Munition Systems business unit, furthering production capability in AV's existing line of loitering munitions, missiles, drones and existing adjacent domains. ESAero leadership and employees are expected to integrate into AV's operations and culture post-close.