AeroVironment Acquires VTOL UAS Developer Pulse Aerospace, LLC for $25.7 Million to Strengthen Family of Small Unmanned Aircraft Systems

  • 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

SIMI VALLEY, Calif.–(BUSINESS WIRE)–Jun. 11, 2019–
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 all ...

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(TM) 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 statements, whether as a result of new information,
future events or otherwise.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20190611005589/en/

Source: AeroVironment, Inc.

AeroVironment, Inc.
Steven Gitlin
+1 (805) 520-8350
pr@avinc.com

Mark Boyer
For AeroVironment, Inc.
+1 (310) 229-5956
mark@boyersyndicate.com

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