AeroVironment announced that it has acquired Empirical Systems Aerospace in a transaction valued at approximately $200 million, as the defense technology company moves to strengthen its manufacturing capabilities and accelerate commercialization across unmanned and electric aviation systems.
The deal structure includes approximately $160 million in stock and $40 million in cash, subject to customary adjustments. The acquisition is expected to be accretive to adjusted EBITDA within the first year following closing.
ESAero, based in San Luis Obispo, California, brings advanced engineering, rapid prototyping, and AS9100-certified manufacturing capabilities, with more than 130,000 square feet of facilities dedicated to unmanned aircraft systems and advanced air mobility platforms. The company specializes in electric and hybrid propulsion, aircraft design, and scalable production.
AeroVironment said the acquisition will enhance its ability to transition quickly from concept to production, a key requirement as defense customers increasingly demand rapid deployment of next-generation systems. ESAero will operate as a subsidiary within AV’s Precision Strike and Defense Systems group, supporting programs across loitering munitions, drones, and adjacent domains.
The transaction follows AeroVironment’s $4.1 billion acquisition of BlueHalo in 2025, signaling a broader strategy to integrate high-end innovation and manufacturing capabilities into a unified defense technology platform.
From a commercialization standpoint, the addition of ESAero is expected to accelerate AeroVironment’s ability to scale production of electric and hybrid propulsion systems and bring advanced unmanned platforms to market faster. The combined entity is positioned to address growing demand from the U.S. Department of Defense and allied customers, particularly in areas requiring rapid prototyping, system testing, and high-rate manufacturing. ESAero’s facilities are also expected to serve as a center of excellence for advanced prototyping and production, enabling faster iteration cycles and improved time-to-market for new technologies.
KEY QUOTES
“ESAero brings an impressive agility in moving from design to manufacturing, which will accelerate AV’s ability to bridge the gap between conceptual design and manufacturing execution. ESAero’s capabilities are vital to addressing the urgent demands of a fast-growing defense tech market, where emerging needs are driving next-generation innovation and product development. We look forward to welcoming the team to the AV family.”
Wahid Nawabi, Chairman, President, And Chief Executive Officer, AeroVironment
“Joining AV represents a unique opportunity to amplify the reach and impact of our innovative work and achieve greater success. By combining ESAero’s engineering and manufacturing capabilities with AV’s unmatched expertise in autonomous systems, we are positioned to advance disruptive aerospace technologies and deliver real, timely value for our customers. I’d like to thank the talented ESAero team for their unwavering dedication, whose efforts have brought us to this pivotal point in our journey.”
Andrew Gibson, President, CEO And Co-Founder, ESAero
