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.  

“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,” said Wahid Nawabi, Chairman, President, and Chief Executive Officer at AV. “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.” 

“Joining AV represents a unique opportunity to amplify the reach and impact of our innovative work and achieve greater success,” said Andrew Gibson, President, CEO and co-founder of ESAero. “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.”  

The acquisition will further solidify AV’s position as a global defense technology leader spanning air, land, sea, space, and cyber domains and enhance the Company’s ability to seamlessly transition from innovative design to advanced manufacturing—a capability critical to addressing the urgent demands of an evolving defense tech market. 

The acquisition will also strengthen AV’s leadership in electric and hybrid propulsion systems while establishing ESAero’s AS9100-certified California facilities as a center of excellence for advanced prototyping and manufacturing. These facilities specialize in conceptual air vehicle designs, electric and hybrid propulsion system development, aircraft modifications, sub-scale technology demonstrators, rapid system prototyping, design for and full-scale manufacturing.  

The acquisition of ESAero follows AV’s $4.1 billion acquisition of BlueHalo in May 2025, marking the second transaction for the defense tech leader in less than a year. Together, these moves signal AV’s intent to integrate best-in-class innovation hubs into a cohesive suite of capabilities trusted by governments and industries worldwide. 

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.