AeroVironment Acquires VTOL UAS Developer Pulse Aerospace, LLC for $25.7 Million to Strengthen Family of Small Unmanned Aircr...
June 11 2019 - 9:10AM
Business Wire
- Pulse’s complementary Vertical Takeoff
and Landing (VTOL) product family strengthens AeroVironment’s
leading family of fixed-wing small unmanned aircraft systems
(UAS)
- Acquisition expands total addressable
market by increasing mission capabilities of AeroVironment family
of systems
- Pulse Aerospace receives multi-year
contract award with a maximum value of more than $13 million from
undisclosed defense customer for Vapor VTOL unmanned systems,
spares and services
- Acquisition expected to be accretive to
AeroVironment earnings by the third full year of operations
AeroVironment, Inc. (NASDAQ: AVAV), a global leader in
unmanned aircraft systems (UAS) for both defense and commercial
applications, today announced it has acquired Pulse Aerospace, LLC,
a developer and supplier of small VTOL UAS, for $25.7 million in
cash, including milestone-based earn-out payments of $5 million.
AeroVironment financed the transaction entirely from available cash
on hand.
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AeroVironment’s Family of Small Unmanned
Aircraft Systems support United States and more than 45 allied
defense forces (Graphic: Business Wire)
Pulse Aerospace is a leading developer of small VTOL UAS
technology in the United States. Pulse’s HeliSynth™ technology
brings flight control, payload, and endurance capabilities to
market at attractive price points for both defense and commercial
end markets. Pulse recently received a multi-year contract award
with a maximum value of more than $13 million from an undisclosed
defense customer for its Vapor unmanned VTOL systems, spares and
services.
AeroVironment expects the transaction to be accretive to its
earnings by the third full year of operations.
“The talented Pulse Aerospace team has created a solution set
that is unique and will expand our family of unmanned systems by
addressing increasing demand from our customers for small VTOL
solutions,” said Wahid Nawabi, AeroVironment’s president and chief
executive officer. “This transaction brings together two highly
complementary companies in terms of products, markets and culture,
and will better position AeroVironment to grow our share of the
small UAS market. The team at Pulse Aerospace shares our focus on
disruptive innovation and we welcome them to AeroVironment.
Together, we will deliver even more capability to our customers in
the United States and more than 45 allied countries around the
world.”
“We are excited to join together to realize the full benefits of
this transaction as we employ key, future-defining technologies
such as robotics, sensors, software analytics and connectivity.
Additionally, we look forward to gaining access to the strong
technical talent pool in the Lawrence, Kansas area to help achieve
our long-term growth objectives,” Nawabi added.
“AeroVironment’s global market presence dramatically increases
the reach of Pulse’s VTOL UAS technology,” said Aaron Lessig, Pulse
Aerospace, LLC’s chief executive officer. “Pulse’s offering expands
AeroVironment’s mission capabilities with increased payload
capacity, which broadens customer use cases. We look forward to
growing AeroVironment’s share of the global unmanned systems market
together.”
In connection with the transaction, Pulse Aerospace’s Lawrence,
Kansas facility will become AeroVironment Innovation Center -
Midwest, with a focus on small VTOL unmanned aircraft and mission
planning solutions.
About AeroVironment, Inc. (AV)
AeroVironment (NASDAQ: AVAV) provides customers with more
actionable intelligence so they can proceed with certainty. Based
in California, AeroVironment is a global leader in unmanned
aircraft systems and tactical missile systems, and serves defense,
government and commercial customers. For more information visit
www.avinc.com.
Safe Harbor Statement
Certain statements in this press release may constitute
"forward-looking statements" as that term is defined in the Private
Securities Litigation Reform Act of 1995. These statements are made
on the basis of current expectations, forecasts and assumptions
that involve risks and uncertainties, including, but not limited
to, economic, competitive, governmental and technological factors
outside of our control, that may cause our business, strategy or
actual results to differ materially from those expressed or
implied. Factors that could cause actual results to differ
materially from the forward-looking statements include, but are not
limited to, our ability to perform under existing contracts and
obtain additional contracts; changes in the regulatory environment;
the activities of competitors; failure of the markets in which we
operate to grow; failure to expand into new markets; failure to
develop new products or integrate new technology with current
products; and general economic and business conditions in the
United States and elsewhere in the world. For a further list and
description of such risks and uncertainties, see the reports we
file with the Securities and Exchange Commission. We do not intend,
and undertake no obligation, to update any forward-looking
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version on businesswire.com: https://www.businesswire.com/news/home/20190611005589/en/
AeroVironment, Inc.Steven Gitlin+1 (805)
520-8350pr@avinc.com
Mark BoyerFor AeroVironment, Inc.+1 (310)
229-5956mark@boyersyndicate.com
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