AeroVironment Buys Empirical Systems Aerospace for $200M to Expand Propulsion
AeroVironment has acquired Empirical Systems Aerospace in a $200M deal (about $160M stock, $40M cash), gaining AS9100-certified unmanned systems and propulsion operations in San Luis Obispo, California. The acquisition is set to be accretive to adjusted EBITDA in the first year while enhancing AeroVironment’s electric and hybrid propulsion leadership.
1. Acquisition Details
AeroVironment closed the acquisition of Empirical Systems Aerospace for approximately $200 million, comprising $160 million in stock and $40 million in cash. The deal is structured to be accretive to adjusted EBITDA in the first year following closing.
2. ESAero Capabilities
ESAero brings AS9100-certified UAS manufacturing and advanced air mobility platforms with over 85,000 sq ft of combined design, prototyping and production facilities in San Luis Obispo, California, and specialized electric and hybrid propulsion engineering.
3. Strategic Synergies
The acquisition strengthens AeroVironment’s electric and hybrid propulsion leadership and accelerates transition from design to manufacturing, integrating ESAero into the Precision Strike and Defense Systems group under the Loitering Munition Systems unit.
4. M&A Context
This marks AeroVironment’s second major acquisition in less than a year following the $4.1 billion BlueHalo purchase in May 2025, underscoring a push to consolidate innovation hubs and expand defense systems capabilities.