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Agreements Signed: Rheinmetall and Lithuania Begin Construction of Modern Artillery Ammunition Production Plant

Friday, November 29th, 2024

Lithuania and Rheinmetall are beginning construction of a modern production plant for 155mm artillery ammunition. The necessary contracts, including a land lease agreement and a supply contract for the procurement of 155mm ammunition, were signed at a ceremony held on 29 November 2024. The Prime Minister of Lithuania, Ms Ingrida Šimonyt?, the Lithuanian Minister for the Economy and Innovation, Ms Aušrin? Armonaite, and the Lithuanian Minister of National Defence, Mr Laurynas Kas?i?nas, attended the event.

With the start of construction in Baisogala, Lithuania is taking a further step towards strengthening its defence sector. A state-of-the-art production facility, including a shell manufacturing and load assembly pack, is being built in the municipality on an area of around 340 hectares. The facility will begin operations from mid-2026 and, once completed, will be able to produce tens of thousands of 155mm calibre artillery shells per year. 180 million euros are invested directly in Lithuania. Around 150 jobs will be created locally. Local companies and the local economy will be integrated into the value chain.

“From day one, the dialogue between the Lithuanian Government and Rheinmetall has been based on a mutual understanding of this project’s necessity and urgency. I am very pleased that today, this cooperation has enabled the beginning of construction of the artillery ammunition production plant. Our defence needs, the importance of the shortest possible supply chains, and strong allied partnership between Lithuania and Germany underscore the need to maintain the momentum as we continue to work in the same spirit of cooperation,” says Ingrida Šimonyt?, Prime Minister of Lithuania.

“We at Rheinmetall are very grateful for the trust Lithuania has placed in us. It is and remains our aspiration at Rheinmetall to be one of the pillars of national and international security provision. This long-term partnership with Lithuania confirms this once again,” says Armin Papperger, CEO of Rheinmetall AG.

“In light of the growing security challenges, we must move beyond words and take concrete steps to strengthen our nation’s defence capabilities. By fostering large-scale investment projects and enabling local production of weaponry, we not only address national security needs but also reduce our dependence on arms procured from international markets. I have no doubt that Lithuania is moving in the right direction, and it is promising to see global leaders like Rheinmetall choosing to be part of this progress,” says Aušrin? Armonait?, the Minister of the Economy and Innovation.

“The establishment of the German defense industry company Rheinmetall’s ammunition factory in Lithuania is not only significant in the context of the defense industry‘s development but will also address the needs of our armed forces. It was quite a complex process, but I am pleased and grateful to my colleagues that, through joint efforts, we managed to reach an agreement on this historic and important project for our national security,” notes Laurynas Kas?i?nas, the Minister of Defence.

As recently as June 2024, Rheinmetall and the Lithuanian Minister of Economy and Innovation Armonaite signed an agreement regulating the establishment of the German defence company Rheinmetall in Lithuania. The project was granted the status of ‘state significance’. As a result, the Lithuanian Centre of Excellence for Ammunition will benefit from special investment and business conditions to speed up the construction of the plant.

Posted in Ammo, Industry, International, Press Release | No Comments »

Former U.S. Navy Petty Officer Sentenced in Conspiracy to Steal and Sell U.S. Military Gear to Countries Around the World

Friday, November 29th, 2024

PROVIDENCE, RI – A former United States Navy Petty Officer First Class who served for more than 20 years in the Navy has been sentenced to eighteen months in federal prison for orchestrating a conspiracy that stole more than $850,000 worth of military gear earmarked for fellow Navy members and then sold the goods to high bidders from more than fifty countries, including China and Russia, announced United States Attorney Zachary A. Cunha.

Richard Allen, 53, of Citrus Heights, CA, was sentenced in U.S. District Court in Providence, RI, by U.S. District Court Chief Judge John J. McConnell, Jr., to eighteen months of incarceration to be followed by three years of federal supervised release. Allen pleaded guilty on August 29, 2024, to conspiracy and six counts of money laundering.

“Sworn to serve his country, Richard Allen instead chose to serve his own shameless greed at the expense of the taxpayer and his fellow men and women in uniform,” said U.S. Attorney Zachary A. Cunha. “Today’s reckoning is a testament to the tenacity of our law enforcement partners and it should serve as a warning: stealing from the United States is a path to prison, not profit.”

“Mr. Allen betrayed his oath to the Navy and defrauded the American taxpayer by initiating and perpetuating an illegal scheme to steal and sell U.S. Government property to unauthorized buyers for his and his co-conspirators’ private financial benefit,” said Special Agent in Charge Michael T. Wiest of the NCIS Northeast Field Office. “NCIS remains committed to rooting out criminality within the ranks that threatens warfighter capabilities and readiness.”

“The Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense (DoD) Office of Inspector General, is fully committed to protecting the integrity of the DoD supply chain,” said Patrick J. Hegarty, Special Agent in Charge of the DCIS Northeast Field Office. “Profiting from the sale of stolen DoD property betrays the public’s trust and negatively impacts our military members. Today’s sentencing demonstrates DCIS’ ongoing commitment to working with its law enforcement partners to hold individuals who harm the DoD accountable.”

“Allen was driven by greed to not only steal and attempt to profit from his crime, but to endanger the very national security he was sworn to uphold. Today’s sentence holds him accountable for this egregious betrayal,” said Special Agent in Charge Michael J. Krol for Homeland Security Investigations in New England.

Court documents detail that, while stationed at Naval Weapons Station Yorktown-Cheatham Annex, in Williamsburg, VA, Allen used his familiarity with the base – a base responsible for supplying ships in the Navy’s Atlantic Fleet with military gear – and unfettered access to warehouses to devise and execute a scheme to steal and sell $856,433 worth of Navy gear and supplies, including working uniforms, winter gear, flame retardant shirts and pants, soft body armor, goggles, infrared flag patches, Navy SEAL Trident insignia, and Small Arms Protective Insert plates. Allen and his co-conspirators stored the items in various locations, including in Rhode Island.

Allen and others identified bulk-sale domestic and international customers for the stolen goods and arranged for delivery either in person or via commercial shipping. Payment for the stolen goods was frequently made and received via PayPal, including dozens of payments made from an account in China. The proceeds were transferred to co-conspirators bank accounts, including Allen’s, in increments of less than $10,000, in an effort to avoid bank reporting requirements.

As part of the scheme, the stolen goods were delivered to paying customers in China, Russia, South Korea, Hong Kong, Kazakhstan, Bahrain, Vietnam, Ukraine, Indonesia, Japan, Malaysia, Thailand, Germany, Singapore, Taiwan, the Czech Republic, Poland, Australia, New Zealand, France, Spain, Ireland, Portugal, Italy, Greece, the United Kingdom, Norway, Switzerland, Finland, Turkey, Austria, Slovenia, Croatia, Hungary, Slovakia, Belgium, Brazil, Philippines, Denmark, the Netherlands, Sweden, Uruguay, Chile, Estonia, Malta, Lithuania, Bermuda, and Canada, and conspirators assisted him in also distributing to Argentina, Luxembourg, Latvia, Belarus, Denmark, and Martinique.

Allen continued to direct the conspiracy and to receive payments after he retired from the U.S. Navy.

“Richard Allen decided to steal from the United States Navy and selfishly profit from selling the goods globally. Today, he was held accountable for his actions,” said Special Agent in Charge James Guanci, U.S. Department of Commerce, Office of Export Enforcement, Boston Field Office. “The Office of Export Enforcement will continue to collaborate with our law enforcement partners to aggressively pursue those who commit export-related crimes.”

“Americans – especially the men and women who have served in uniform – deserve public employees who do their jobs honestly and with integrity,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “Richard Allen failed to do both when he selfishly took advantage of his position with the Navy to commit fraud, cheating both his fellow officers and taxpayers. This sentence holds him accountable for his crimes and sends a message loud and clear that this is not the way to go about boosting your bank account.”

The case was prosecuted by Assistant United States Attorneys Christine D. Lowell and Paul F. Daly, Jr.

The matter was investigated by Naval Criminal Investigative Service-Northeast Field Office; Defense Criminal Investigative Service-Northeast Field Office; Homeland Security Investigations; Department of Commerce, Office of Export Enforcement-Boston Field Office; and the FBI.

US Department of Justice

Posted in Navy, Press Release | 3 Comments »

XTech Tactical Releases Upgraded over Factory Steel Reinforced Glock Compatible Magazines

Wednesday, November 27th, 2024

November 26th, 2024

Tempe, AZ

Years in the making, XTech Tactical proudly announces its standard and extended capacity Glock compatible magazines! The magazines continue the company’s MAG series of steel reinforced polymer magazines that was first released and well established as the new standard for AK-47 magazines.

Key features of all the MAG magazines for Glock include:

– 17-17 Stainless Steel Plus Power Springs vs OE music wire

– Proprietary Delrin Blend “No- Stick” Follower

– Enhanced Baseplate with Side-Scallops for rapid extraction

– Steel Reinforced Factory Clone Magazine Bodies

– Fit EVERYTHING, pistols, pcc, magwells etc

“A few years back we determined that to hit our goals as the world’s leading magazine & magazine extension company, mags for Glocks were a must. A core pillar of our business is to raise the standards for quality, durability & innovation in our market, and the MAG line does just that. As XTech is known for, we gave our customers a voice. They wanted better springs, they wanted better baseplates, they wanted more capacity options, and they wanted a better baseline price. We are excited that we were able to hit each of those notes!”, stated Jeremy Deadman, company President.

Initial flush fit offerings now shipping are:

1. MAG17-17 17 round flush fit magazine, SKU XT3030001, MSRP $24.95

2. MAG17-17 2pack 2 pack of MAG17-17, SKU XT3030002, MSRP $42.95

3. MAG19-15 1 15 round flush fit magazine, SKUXT3030101, MSRP $24.95

4. MAG19-15 2pack 2 pack of MAG19-15, SKU XT3030102, MSRP $42.95

Additionally, XTech Tactical is offering extended magazines that ship with its MAG-ADAPT line

1. MAG19-17 17 round extended magazine for Glock 19 w/o front scallop cut

a. Includes MAG17-17 & MAG-ADAPT 19-17

b. SKU XT3030601, MSRP $34.95

2. MAG19-17 G5 17 round extended magazine for Glock 19 with front scallop cut

a. Includes MAG17-17 & MAG-ADAPT 19-17 G5

b. SKU XT3030801, MSRP $34.95

3. MAG26-15 15 round extended magazine for Glock 26

a. Includes MAG19-15 & MAG-ADAPT 26-15

b. SKU XT3031001, MSRP $37.95

4. MAG26-17 17 round extended magazine for Glock 26

a. Includes MAG17-17 & MAG-ADAPT 26-17

b. SKU XT3031201, MSRP $39.95

www.xtechtactical.com/shop/magazines/glock-magazines

Posted in Press Release, Weapon Accessories | No Comments »

Bombardier Defense Delivers First Global 6500 Aircraft To The U.S. Army’s HADES Program

Wednesday, November 27th, 2024

Bombardier Defense delivered the first Bombardier Global 6500 aircraft in support of the United States Army’s High Accuracy Detection and Exploitation System (HADES) program during a ceremony held at Bombardier Group’s U.S. Headquarters in Wichita, Kansas

The Global 6500 is a proven platform providing range, speed, reliability and endurance. It represents the ideal fixed-wing solution for the U.S. Army’s next-generation intelligence, surveillance and reconnaissance (ISR) aircraft, flying higher, faster and farther than legacy airborne sensor platforms

With the ability to deploy in all weather conditions, and the support of Bombardier’s 24/7 worldwide services network, Bombardier’s Global family of aircraft has become the platform of choice for over 10 different mission types

The Bombardier Global 6500 aircraft delivered to the U.S. Army in support of the HADES program.

Bombardier Defense celebrated the delivery of the first Bombardier Global 6500 aircraft to the United States Army in support of the High Accuracy Detection and Exploitation System (HADES) program. Bolstered by the Global 6500’s high-performance capabilities, the fixed-wing platform will contribute to strengthening the U.S. Army’s aerial deep sensing abilities and marks a significant milestone toward the United States’ goal of modernizing its aerial military intelligence.

Joined by U.S. Senator Jerry Moran (R-KS), State of Kansas officials, and U.S. Army leaders, the celebration highlighted the delivery of the first prototype airframe for the next-generation intelligence, surveillance and reconnaissance (ISR) solution and the beginning of the next stage of the program to integrate systems.

“Bombardier Defense is honored to support the U.S. Army with the delivery of the first Global 6500aircraft, a high-performance platform that possesses the speed, endurance-at-range and altitude capabilities to support deep-sensing for the Army of tomorrow,” said Steve Patrick, Vice President of Bombardier Defense. “This best-in-class jet is the future-proofed solution to provide the U.S. Army with the capabilities needed to face current and future threats.”

“We are proud of the partnership with Bombardier Defense and the mission-focused professionals in the State of Kansas. We remain excited about the opportunities we can unlock by pairing the performance, versatility and reliability of the Global 6500 with modern payloads aligned to priority intelligence requirements. HADES is the centerpiece of the Army’s collection strategy, and the Global 6500 is the system that brings that strategy to life. This aircraft gives us the range, payload capacity, speed and endurance to deliver timely, relevant and responsive capabilities for the full spectrum of Army and Joint collection requirements.” – Andrew Evans, Director, HQDA G-2 ISR Task Force

“The partnership between Bombardier, the U.S. Army and the Wichita workforce has produced a next-generation aircraft equipped to meet the demands of warfare in a new era of technology,” said U.S. Senator Jerry Moran (R-KS). “The HADES aircraft has the tools needed to deter threats, conduct surveillance and help keep our country safe. This is the start of a new chapter in the aviation capabilities of our military and continues Kansas’ legacy of defense manufacturing.”

Fixed-wing platforms like Bombardier’s Global 6500aircraft, which flies faster, longer, and higher than legacy airborne sensor platforms, offer a significant advantage toward enhancing performance of aerial ISR missions. The Global 6500 provides several advantages for military entities, such as reliability, operational reach, and expanded operating areas. With a maximum endurance of up to 18 hours, and up to 750 flight hours between maintenance intervals, and part of the Global family that has an impressive 99.83% dispatch reliability, the Global 6500 aircraft is an ideal choice to accomplish operational objectives such as deep sensing.

Bombardier Defense has dedicated in-house engineering and support teams available 24/7 worldwide with the ability to incorporate modifications tailored to the customer’s need with complete certification capabilities across the full spectrum of civilian, military and hybrid operations. Bombardier brings decades of experience working with special mission operators and renowned mission systems integrators to adapt its proven platform for critical operations worldwide.

Posted in Army, Aviation, Contracts, ISR, Press Release | No Comments »

Kimber Releases High Capacity 1911 – the 2K11

Wednesday, November 27th, 2024

TROY, AL — Kimber, Mfg., Inc., is excited to announce their latest introduction with the 2K11.

Kimber continues to add to their exciting line of product releases for 2024 with this latest introduction, the 2K11. This all-new high capacity 1911 incorporates a number of features that elevate the performance of this product category above any current production variant.

The new Kimber 2K11 debuts in a standard and target configuration and each model is chambered in 9mm as well as 45 ACP. The standard model comes with 3 magazines and 1 C&H® optic mounting plate for Trijicon RMR type footprints. Three additional optic mounting plates are available to support a variety of preferences. The target models also come standard with 3 magazines and 1 C&H® optic mounting plate, plus the target models feature a ported slide, adjustable rear target sight as well as a Kimber exclusive Stan Chen Customs® competition magwell.

Designed from hammer to muzzle to incorporate elements many consumers have asked for, the 2K11 features an external extractor for increased reliability and durability. It also features a type III hard anodized aluminum grip module. The 2K11 also has improved internal geometry that enhances the reliability of feeding the high-capacity magazines. Finally, the Kimber signature GT Trigger is unlike any other production trigger on the market. Breaking at a consistent 3.5lbs – there is no other production trigger on the market that can match the sharp wall, crisp break and performance of a Kimber. This combined with the patent pending tool-less guide rod for ease of disassembly and cleaning highlights 5 unique attributes that set the Kimber 2K11 apart from every other model on the market.

Everett Deger, Director of Marketing and Communications stated: “We were determined to produce the very best high capacity 1911 and deliver a superior value. The 2K11 has several unique features that come standard that you have to have customized in the aftermarket to achieve what you get out of the box with Kimber.”

Like every Kimber currently in their vast line up, the 2K11 comes with a limited Lifetime Warranty. See the full lineup of Kimber firearms on their website kimberamerica.com. Because a Kimber is What All Guns Should Be™.

Posted in Firearms, Press Release | No Comments »

Gentex Corporation Awarded Navy OTA for Next Generation Fixed Wing Helmet Program

Wednesday, November 27th, 2024

CARBONDALE, PA, November 26th, 2024 – Gentex Corporation, a global leader in personal protection and situational awareness solutions for defense forces, aircrew, emergency responders and industrial personnel, has been awarded an Other Transaction Agreement (OTA) by the U.S. Navy to develop the Navy’s Next Generation Fixed Wing Helmet (NGFWH) program. This further signifies Gentex’s commitment to providing cutting-edge protection for military aircrew and marks an important step forward in Naval Aviation safety and innovation.

Through this OTA, the NGFWH will complete qualification and achieve airworthiness and production readiness qualifications for use on Navy fixed wing aircraft including the E-2D, F/A-18, EA-18G, T-45 and T-6. Designed to meet the evolving mission requirements of Naval Aviation, the NGFWH is set to become the Navy’s standard helmet for its fixed-wing, tactical aviators.

The NGFWH will deliver a more advanced and adaptable helmet system and will provide a platform for future upgrades, ensuring the system evolves with the needs of Navy aircrew. Key System Attributes (KSAs) for the NGFWH include improved mass properties such as reduced weight, optimized center of gravity and balanced principal moments of inertia.

“Gentex Corporation is honored to be awarded a Navy OTA for the Next Generation Fixed Wing Helmet program. This partnership reflects our continued commitment to delivering cutting-edge protection and performance for those who serve, and we are dedicated to supporting the Navy’s mission with the highest standards of performance and safety,” said Rob Stimis, Fixed Wing Segment Director at Gentex Corporation.

This program will span approximately 18 months, culminating in a helmet system that represents the next generation of fixed-wing pilot safety and mission capability. Operational fielding of the NGFWH is anticipated to begin in late 2025.

Posted in Advertiser, Aviation, Contracts, Helmets, Navy, Press Release | 3 Comments »

DroneShield Releases 4Q24 Firmware Updates

Tuesday, November 26th, 2024

DroneShield (“DroneShield” or “the Company”) is pleased to announce it has released the latest update to its full range of Radio Frequency (RF) sensors including the RfPatrol, DroneSentry-X and RfOne models.

This update adds new drone models and communication protocols which can be identified by RFAI, including new types of home-made or non-commercial UxS. RF devices operate with greater stability and accuracy resulting in faster, more reliable drone detection.

New features include:

Faster Scanning with AI: Detection scans are now 17% faster, so users are notified of drones sooner and kept up to date in near-real-time. Settings can be configured to further optimise scan time based on mission requirements

New Drone Types: RFAI drone library has been expanded to recognise more signals which are used in custom and aftermarket drones

Growing API: Each device’s inbuilt gRPC API extends to cover greater control of positioning systems. Disruption protocols are faster and more regular, providing dependability when it matters most

Cybersecurity Resilience: Onboard firmware has seen a slew of security improvements in line with expectations from leading defence clients

AI & Software Improvements: Increased accuracy in direction-finding calculations, as well as future-proofing features for upcoming performance improvements in 2025

Angus Bean, DroneShield Chief Technology Officer, commented, “DroneShield always aims to provide our customers with industry-leading technology so they can maintain the highest degree of safety and security in the face of an evolving drone threat.”

For more information on product capabilities, visit www.droneshield.com.

Posted in Press Release, Tac Apps, UAS | No Comments »

AeroVironment to Acquire BlueHalo, Establishing Next-Generation Defense Technology Company

Tuesday, November 26th, 2024

Enables AeroVironment’s Entry into Key Segments and Strengthens Multi-Domain Capabilities

All-Stock Transaction Will Significantly Enhance Growth and Diversification

ARLINGTON, Va. – November 19, 2024 – AeroVironment, Inc. (NASDAQ: AVAV) (“AV” or the “Company”) and BlueHalo LLC (“BlueHalo”) today announced the execution of a definitive agreement under which AV will acquire BlueHalo in an all-stock transaction with an enterprise value of approximately $4.1 billion, creating a more diversified global leader in all-domain defense technologies. The combined company will bring together complementary capabilities to offer a comprehensive portfolio of high-growth franchises, powered by cutting-edge technology and focused on addressing the most important priorities and needs of our nation and allies around the globe.

BlueHalo, an Arlington Capital Partners portfolio company, was founded as a purpose-built platform providing industry-leading capabilities in several key mission areas: Space Technologies, Counter-Uncrewed Aircraft Systems (cUAS), Directed Energy, Electronic Warfare, Cyber, Artificial Intelligence and other Emerging Technologies including Uncrewed Underwater Vehicles (UUVs). Since its founding in 2019, BlueHalo’s notable accomplishments include being the first to successfully operationally field directed energy (DE) laser weapon systems (LWS) with its LOCUST LWS, being awarded Space Force’s multi-billion dollar program to transform space operations with BADGER, its adaptive phased array product and serving as a leader in Radio Frequency Counter-Unmanned Aerial Systems (RF C-UAS), delivering its 1000th system last year with its Titan and Titan-SV systems. BlueHalo has focused on cutting-edge research and development allowing for the development of products and services to transform the future of global defense.

BlueHalo estimates that it will achieve more than $900 million in revenues for 2024, in addition to funded backlog of nearly $600 million and a pipeline of multiple billion-dollar opportunities and programs of record. BlueHalo generated approximately $886 million of revenue in 2023, compared to $759 million and $660 million in 2022 and 2021, respectively.

The acquisition of BlueHalo will create a diversified Defense Tech company with a highly complementary and differentiated portfolio of solutions in Uncrewed Systems, short and long range Loitering Munitions, Counter UAS, Space Technologies, Electronic Warfare and Cyber, powered by AI and Autonomy. This combination will drive innovation, expand manufacturing capacity and enable us to better support our customers and their critical missions. AV expects that BlueHalo’s portfolio of 10 flagship solution families and more than 100 patents will seamlessly integrate with AV’s complementary existing expertise in the design, development, manufacturing, training and servicing of Uncrewed Systems, Loitering Munitions and Advanced Technologies.

AV and BlueHalo believe that these synergies will primarily be identified as administrative and operational cost savings and sharing best practices from each company. The companies’ shared culture of agile innovation and mission expertise will enable the combined entity to develop and deliver next-generation technologies that will have significant military value and redefine the next era of Defense Technology. On a pro forma basis, the combined company is expected to deliver more than $1.7 billion in revenue.

“For over 50 years, AV has pioneered innovative solutions on the battlefield, and today we are poised to usher in the next era of defense technology through our combination with BlueHalo,” said Wahid Nawabi, AV chairman, president and chief executive officer.

“BlueHalo not only brings key franchises and complementary capabilities, but also a wealth of technologies, diverse customers and exceptional talent to AV. Together, we will drive agile innovation and deliver comprehensive, next-generation solutions designed to redefine the future of defense. We are thrilled to welcome the talented BlueHalo team as we unite our strengths, expand our global impact and accelerate growth and value creation for AV shareholders.”

Jonathan Moneymaker, chief executive officer of BlueHalo, said, “BlueHalo was founded to address the most pressing challenges confronting the defense and national security community, from unconventional threats to near-peer adversaries. We have pioneered solutions for drone warfare, distributed autonomy, and the need for more robust and assured access to space in an increasingly contested, crowded and competitive domain. Through these efforts, we have earned our reputation as a trusted partner in defense innovation. By uniting with AV, we are building an organization equipped to meet emerging defense priorities and deliver purpose-driven, state-of-the-art solutions with unmatched speed. Together, we remain committed to protecting those who defend us while driving the next generation of transformational advancements in defense technology.”

Strategic and Financial Benefits:

• Creates a diversified industry leader. This transaction brings together AV’s established portfolio of cutting-edge defense solutions with BlueHalo’s emerging and industry-defining technologies. This union will provide customers with a comprehensive suite of solutions across multiple domains—including air, land, sea, space and cyber. Together, AV and BlueHalo will create a leader in integrated defense technologies with a global footprint capable of addressing the full spectrum of modern defense.

• Increases agility and speed, with enhanced infrastructure, manufacturing capabilities and geographic footprint. The combined company will benefit from greater resources, enabling faster innovation and more efficient deployment of critical defense systems.

• Supports AV’s entry into additional key defense segments and builds on the Company’s strong track record of providing essential solutions. With BlueHalo’s portfolio, AV will enter into new segments that will significantly increase the Company’s total addressable market, including Counter-UAS, Directed Energy, Electronic Warfare, Cyber and Space technologies. The acquisition will bring with it BlueHalo’s key programs of record, deep customer relationships and strong backlog and pipeline, positioning the future company as a more robust and sustainable prime defense solution provider. This partnership will enhance AV’s ability to meet the evolving needs of the Department of Defense (DoD) and allied nations with a robust suite of innovative solutions.

• Diversifies mix of customers, products and revenue. The combined company is expected to achieve a more balanced and diversified customer base, product and revenue mix, benefiting from BlueHalo’s established presence in key emerging defense markets. The combined company will benefit from expanded geographical reach, with the ability to provide BlueHalo’s solutions to AV’s larger international customer base. By integrating complementary capabilities, AV will be well-positioned to generate sustained long-term value for shareholders.

• Generates attractive returns. AV expects the transaction to be accretive to revenue, adjusted EBITDA and non-GAAP EPS in the first full fiscal year post-close.

Transaction Details

The transaction, which has been unanimously approved by both companies’ board of directors or managers, is expected to close in the first half of calendar 2025, subject to regulatory and AV shareholder approvals, as well as other customary closing conditions.

Per the terms of the merger agreement, AV will issue approximately 18.5 million shares of AV common stock to BlueHalo.

Following the close of the transaction and based on AV’s shares outstanding as of November 18, 2024, AV’s shareholders will own approximately 60.5% of the combined company and BlueHalo’s equity holders will own approximately 39.5%, subject to closing adjustments. Arlington Capital Partners, an investment firm that is the majority owner of BlueHalo, will retain a significant ownership stake in the combined company.

We expect substantially all of the BlueHalo holders to enter lock-up agreements with respect to their transaction consideration, with 40% releasing 12 months post close and the remaining 60% to be released in equal tranches 18 and 24 months after the close.

Leadership, Governance and Headquarters

Following the completion of the transaction, AV Chairman, President and CEO Wahid Nawabi will be Chairman, President and CEO of the combined company. Jonathan Moneymaker, CEO of BlueHalo, will serve as a strategic advisor to Mr. Nawabi and the combined company Management Team.

Upon closing, the AV Board of Directors will be expanded to comprise 10 members.

Arlington Capital Partners will have the right to appoint two directors to the Board, subject to minimum ownership thresholds.

The combined company will be at headquartered in Arlington, Virginia, at AV’s corporate headquarters.

Posted in Industry, Press Release | No Comments »