Deal Details

BlueHalo Acquires Eqlipse Technologies

Technology & Services
Industrial

BlueHalo acquisition of Eqlipse, portfolio companies of Arlington

Summary

BlueHalo (the "Company") has announced its acquisition of Eqlipse Technologies (“Eqlipse”). Both BlueHalo and Eqlipse are portfolio companies of Arlington Capital Partners (“Arlington”). The transaction is subject to customary closing conditions and regulatory approvals and is expected to close in Q1 2024.

Baird served as financial advisor to Arlington Capital Partners on this transaction.

About

BlueHalo is a next-generation prime contractor providing industry-leading capabilities in the areas of Space, C-UAS & Autonomous Systems, Electronic Warfare & Cyber, and AI/ML. Their rapid development and deployment of innovative technologies has enabled BlueHalo to operationalize the next-generation satellite communications system for Space Force and become the first to successfully field High Energy Laser C-UAS with its LOCUST system, delivering over 1,000 systems in 2023. From laser communication payloads to critical Class-A satellite subsystems, BlueHalo has more than 260 space-qualified systems flying on-orbit. BlueHalo is headquartered in Arlington, Virginia.

BlueHalo’s acquisition of Eqlipse illustrates the following themes in Defense & Government M&A: (1) strategic demand for a scaled next-generation defense prime; (2) growing enthusiasm for unique business models capable of delivering rapid defense innovation; (3) market priority for companies with distinguished capabilities in the fast-growing swim lanes of the defense budget.

Eqlipse offers a deep portfolio of solutions delivering mission-enabling capabilities, spanning full-spectrum cyber and signals intelligence (SIGINT) engineering, Electronic Warfare (EW), digital operations and identity management, and cutting-edge R&D. Eqlipse will further enhance BlueHalo's ability to provide high-end products and solutions to its customers through its world-class EW capabilities, adding significant depth within the company's current cyber franchise, expanding BlueHalo's best-in-class suite of Open Source Intelligence (OSINT) offerings, and augmenting the united entity's advanced R&D capabilities. Eqlipse is headquartered in Herndon, Virginia.

As a combined company, BlueHalo will deliver enhanced scale and broader capabilities to its customers, accelerating the development and fielding of its advanced defense technologies with a total employee count of nearly 2,400 across 11 states and annual revenue approaching $1B. Upon completion of the transaction, BlueHalo will hold nearly 90 patents, employ more than 200 PhDs in relevant fields, and offer 20 product lines featuring industry-leading solutions across four key mission areas: Space, C-UAS & Autonomous Systems, Cyber & EW, and Artificial Intelligence (AI)–all stated priority areas for the DoD. The Company will remain headquartered in Arlington, Virginia, and will continue to invest in bringing the latest technological advancements to the defense industry.

Arlington Capital Partners is a Washington, D.C.-area private investment firm specializing in government regulated industries. The firm partners with founders and management teams to build strategically important businesses in the government services and technology, aerospace and defense, and healthcare sectors. Since its inception in 1999, Arlington has invested in over 150 companies and is currently investing out of its $3.8 billion Fund VI. Arlington is headquartered in Bethesda, Maryland.

Technology & Services
Industrial

BlueHalo acquisition of Eqlipse, portfolio companies of Arlington