(Reuters) – Drone maker AeroVironment (AVAV.O) said on Monday it has acquired Empirical Systems Aerospace, a producer of unmanned aircraft systems and advanced air mobility platforms, in a cash-and-stock deal valued at about $200 million.
ESAero will operate as a subsidiary of AeroVironment, reporting into its precision strike and defense systems group, which makes Kamikaze drones, or loitering munitions.
The deal unfolds against a backdrop of increased defense outlays and growing adoption of precision drones amid ongoing global conflicts, and follows AeroVironment’s $4.1 billion purchase of space and defense engineering firm BlueHalo in 2025.
“ESAero’s capabilities are vital to addressing the urgent demands of a fast-growing defense tech market,” said AeroVironment CEO Wahid Nawabi.
Last month, two sources exclusively told Reuters that the U.S. Army deployed AeroVironment’s LOCUST laser counter-drone weapon system near El Paso International Airport, leading to a seven-hour airspace shutdown.
That, along with another incident later in February where the U.S. military errantly shot down a government drone with a laser-based anti-drone system, last week prompted a top Democrat on the U.S. Senate Commerce aviation subcommittee to call for a government investigation into the events.
Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Shilpi Majumdar
