Aerovironment buys Arcturus UAV in $405M deal January 15
Spc. Christopher McCoy conducts an engine start on the Jump 20 drone prior to a launch during a capabilities assessment at Fort Riley, Kansas, on April 8, 2020. (U.S. Army) Arcturus, which was founded in 2004 in California, specializes in Group 2 and 3 UAS, which run the gamut between drones over 20 pounds and under roughly 1,300 pounds. The Jump is a multimission, medium-endurance, vertical-takeoff-and-landing system that can become airborne independent of a runway. Arcturus also makes the T-20, a multimission, medium-endurance, catapult-launched system. The Army is moving toward a final request for proposals with its Future Tactical UAS program that will replace the Shadow UAS, so the sale of Arcturus to a much larger UAV company is timely.
AeroVironment portfolio of unmanned systems. Photo Credit: Graphic Business Wire
AeroVironment, Inc. (Simi Valley, Calif., U.S.), a global leader in unmanned aircraft systems, and Arcturus UAV, Inc. (Petaluma, Calif., U.S.), a privately-held provider of Group 2 and 3 unmanned aircraft systems (UAS) and services, entered a definitive agreement as of Jan. 13, under which AeroVironment will acquire Arcturus UAV for a total purchase price of $405 million, including $355 million in cash and $50 million in AeroVironment stock. The transaction, which was unanimously approved by the AeroVironment and Arcturus UAV Boards of Directors, is expected to accelerate AeroVironment’s strategy to drive profitable growth and value by expanding into attractive adjacent segments and by broadening its capabilities and customer footprint.
Drone Maker AeroVironment Soars on Deal for Arcturus UAV
AeroVironment agreed to acquire Arcturus UAV for a combination of cash and stock in a bid to expand its product portfolio.
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Shares of AeroVironment (
AVAV) - Get Report rose sharply Thursday after the drone maker entered into a definitive agreement to acquire another drone maker, privately-held Arcturus UAV, for $405 million in a cash and stock deal.
Shares of the Simi Valley, Calif., company were rising 28.0% to $123.07 on Thursday afternoon.
Terms of the deal include a payment of $355 million in cash by AeroVironment and $50 million in stock, AeroVironment said.
The transaction, expected to close during the fiscal fourth quarter of AeroVironment’s 2021, which ends in April, and subject to customary closing conditions and regulatory approvals, was unanimously approved by the boards of directors at both companies.