Defense technology leader AeroVironment has announced the acquisition of Empirical Systems Aerospace (ESAero) for approximately $200 million. This strategic move aims to significantly expand AeroVironment’s manufacturing capabilities, particularly in the rapidly growing defense tech market, and enhance its expertise in electric and hybrid propulsion systems for unmanned aerial systems (UAS).
AeroVironment’s acquisition of ESAero, a California-based UAS engineering and advanced air mobility platform producer, is set to accelerate the company’s capacity to bridge the gap between conceptual design and manufacturing execution. ESAero’s agility in moving from design to production is seen as vital for addressing the urgent demands of the fast-paced defense technology market.
ESAero’s existing facilities in San Luis Obispo, California, which are AS9100-certified, will be integrated into AeroVironment’s operations. These sites will focus on improving manufacturing capabilities and will be established as a “center of excellence” for advanced prototyping and manufacturing. This integration is expected to bolster AeroVironment’s offerings in areas such as electric and hybrid propulsion systems, aircraft modifications, and sub-scale technology demonstrators.
ESAero will operate as a subsidiary within AeroVironment’s Precision Strike and Defense Systems group, specifically under the Loitering Munition Systems business unit. This move follows AeroVironment’s previous acquisition of BlueHalo in May 2025, signaling a continued strategy of integrating specialized innovation hubs to create a unified suite of capabilities for government and industry clients. The acquisition is anticipated to be accretive to adjusted EBITDA in its first year.
AeroVironment is a U.S. defense technology company known for its uncrewed systems, loitering munitions, and tactical missile systems. ESAero specializes in the design, engineering, and manufacturing of unmanned aerial systems and advanced aerospace technologies for both military and commercial applications, with a strong focus on electric and hybrid propulsion.