Shares of drone maker AeroVironment (NASDAQ: AVAV), a small defense contractor that also manufacturers Quantix unmanned aerial vehicles for the commercial market, are soaring this morning, already up 27% as of 10:10 a.m. EST. What's happening here?
In a press release this morning, AeroVironment announced that it has signed a definitive agreement to acquire leading privately held Group 2 (under 55 pounds) and Group 3 (under 1,320 pounds) unmanned aerial vehicle-maker Arcturus UAV. AeroVironment will pay $355 million in cash and $50 million more in stock for its new prize, and receive in exchange a subsidiary with strong ties to the U.S. Special Forces and U.S. Army markets, as well as international customers.
Arcturus UAV's flagship T-20 drone. Image source: Arcturus UAV.