Major $200 Million Acquisition Brings SLO Aerospace Firm Into AeroVironment

San Luis Obispo-based Empirical Systems Aerospace, Inc., an aerospace engineering firm, has been acquired by Central Coast-based AeroVironment, Inc. for $200 million. The company announced the acquisition on March 16, 2026.

Empirical Systems Aerospace is known as a producer of unmanned aircraft systems (UAS) and advanced air mobility (AAM) platforms, with a focus on engineering-driven innovation.

The acquisition is expected to expand ESAero’s capabilities in providing defense solutions to the U.S. military, including work tied to U.S. Department of War requirements.

The transaction is valued at approximately $200 million, with about $160 million in stock and the remainder in cash. The deal is expected to contribute to AeroVironment’s adjusted EBITDA within the first year.

Today, AV grows stronger, faster, and smarter with the addition of the Empirical Systems Aerospace, Inc. (@ESAeroUS) to our team. As a leading producer of UAS and advanced air mobility platforms, ESAero will strengthen and expand the capabilities we deliver to the military. Learn… pic.twitter.com/k136RbhoDF

— AV (@aerovironment) March 16, 2026

ESAero operates in San Luis Obispo, where it maintains engineering, testing, and manufacturing facilities. These include a 32,000-square-foot design and prototyping facility and a 53,000-square-foot manufacturing facility.

AeroVironment said the acquisition is expected to strengthen its design-to-production pipeline and accelerate development of advanced technologies.

The acquisition is also expected to expand capabilities across air, land, sea, space, and cyber domains. ESAero will be integrated into AeroVironment’s Precision Strike and Defense Systems group.

ESAero has a reputation for delivering high-performance systems designed to meet evolving industry and defense needs.

AeroVironment Chairman and CEO Wahid Nawabi said the addition of ESAero will help accelerate innovation and improve the company’s ability to respond to growing market trends.

“ESAero brings an impressive agility in moving from design to manufacturing, which will accelerate AeroVironment’s ability to bridge the gap between conceptual design and manufacturing execution,” he added.

ESAero President and CEO Andrew Gibson said the acquisition creates opportunities for growth and collaboration by combining engineering and manufacturing expertise.

The deal follows AeroVironment’s acquisition of BlueHalo in 2025, signaling continued expansion in the defense technology sector.

Founded in 2003, ESAero has developed engineering expertise in electric and hybrid propulsion. Its work includes rapid prototyping, aircraft design, and AS9100-certified manufacturing for commercial and defense applications.

ESAero will operate as a subsidiary of AeroVironment following the acquisition.