Potomac Tech Wire - Nov. 19

Arlington-based AeroVironment to Acquire Arlington-based BlueHalo; $4.1 Billion Enterprise Value

o AeroVironment to Acquire BlueHalo in $4.1 Billion Deal
o Enlightenment Capital Closes on New $825 Million Fund
o Arlington-based EarthOptics Raises $24 Million in Round
o Arlington-Based Tria Federal Acquires Leesburg’s Softrams
o Herndon-Based Tyto Athene Acquires Vienna’s Key Solutions
o TECfusions Secures $300 Million to Accelerate Virginia Data Center
o Frenos Wins Seventh Annual DataTribe Challenge
o Briefly Noted: Molg, RegScale, ZeroedIn Technologies

AeroVironment to Acquire Arlington-based BlueHalo in $4.1 Billion Deal; Porfolio Company of Arlington Capital

Arlington, Va. – In a massive acquisition of a local, privately-held company, Arlington-based defense contractor AeroVironment announced that it will acquire Arlington-based BlueHalo, a recently created defense technology company, in an all-stock transaction with an enterprise value of $4.1 billion. BlueHalo, a provider of advanced defense technologies founded in 2019, is a portfolio company of Arlington Capital Partners. After several major acquisitions in recent years, BlueHalo said it expects to register more than $900 million in revenues in 2024.

“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,” said Jonathan Moneymaker, CEO of BlueHalo. “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.”

Enlightenment Capital Closes on New $825 Million Fund

Chevy Chase, Md. – Enlightenment Capital, a Chevy Chase-based investment firm focused on the aerospace, defense and government sectors, announced a “hard cap” closing of its newest fund – Enlightenment Capital Solutions Fund V - with $825 million in committed capital. The firm said the fund will focus on middle market companies in the Aerospace, Defense, Government & Technology (ADG&T) space that can achieve accelerated growth.

“The successful closing of our fifth fund is a testament to our team and portfolio partners, who share a commitment to investing in dynamic businesses innovating in support of complex customer and mission requirements,” said Devin Talbott, founder and managing partner of Enlightenment Capital.

Arlington-based EarthOptics Raises $24 Million in Funding Round

Arlington, Va. – EarthOptics, an Arlington-based developer of soil analysis and agricultural technology, announced that it has completed a $24 million funding round. The company’s technology helps farmers and ranchers make decisions using advanced analytics and data. The round was led by Conti Ventures and The Production Board, and included participation from Cibus Capital, RuralWorks Partners, Norinchukin Bank, Leaps by Bayer, S2G Ventures, Middleland Capital’s VTC Ventures, Cooperative Ventures, iSelect Fund, Serra Ventures, TO VC, Route 66 Ventures, Shell Ventures, Pappas Capital, CNH Ventures, and Rabo Ventures. In September, EarthOptics merged with Pattern Ag.

"At EarthOptics, we believe that the future of farming lies in precise, data-driven insights that empower farmers and ranchers to optimize every aspect of their operations," said Lars Dyrud, CEO of EarthOptics.

Arlington-Based Tria Federal Acquires Leesburg’s Softrams

Arlington, Va. – Tria Federal, an Arlington-based provider of technology and advisory services to federal health and public safety agencies, said it has acquired Leesburg-based Softrams, a technology firm specializing in human-centered digital services and system modernization for federal agencies. Financial terms of the deal were not disclosed. The combined company will have over 1,500 employees supporting customers in more than 20 federal agencies. Softrams’ largest customer is the Centers for Medicare & Medicaid Services (CMS). The company also does work for the Department of Homeland Security, Department of Defense and Department of Labor.

Herndon-Based Tyto Athene Acquires Vienna’s Key Solutions

Herndon, Va. – Tyto Athene, a Herndon-based federal systems integrator, said it has acquired Vienna-based Key Solutions Inc. (KSI), a provider of bid and proposal development consulting. Financial terms of the deal were not disclosed. Greg McCarthy, the CEO of KSI, will become the combined company’s vice president of capture. Tyto said the move will strengthen its footprint in the federal and global public sector markets with government contracting capture and proposal capabilities.

TECfusions Secures $300 Million to Accelerate Virginia Data Center

Clarksville, Va. – TECfusions, a Florida-based developer of data centers, said it has secured a $300 million loan to expedite construction of its Clarksville, Va. data center. The company said the funds, in the form of a 15-year loan, will go toward completing construction of the first phase of the Mecklenburg County facility. The build-out is projected to achieve 37.5 megawatts once it is completed.

Frenos Wins Seventh Annual DataTribe Challenge

Fulton, Md. – Frenos, a North Carolina-based developer of a security assessment platform, on Thursday was named winner of the seventh annual DataTribe Challenge, a yearly competition for cybersecurity and data science startups hosted by Fulton-based startup foundry DataTribe. Frenos’ platform is designed for operational technology environments and critical infrastructure where performing attack simulations and penetration testing on live systems is not feasible. The company beat out three other finalists – Texas-based DataMonstr, New Jersey-based ForceField and San Francisco-based Validia. Each of the finalists is pre-Series A and has not received funding in excess of $1.2 million to date.

Briefly Noted:

(Sterling, Va.) Sterling-based circular manufacturing and robotics company Molg said it has won a $5 million grant from the Department of Energy’s Office of Energy Efficiency and Renewable Energy. The company will use the funds to develop an AI-enabled circular demanufacturing platform for consumer laptops, designed to harvest batteries 50% faster and at half of the cost of current processes.

(Tysons, Va.) Tysons-based RegScale, the developer of a controls monitoring platform, has named Roland Cloutier as a strategic advisor. Cloutier most recently served as global chief security officer of ByteDance and TikTok.

(Linthicum, Md.) Linthicum-based ZeroedIn Technologies, a developer of talent management analytics and employee survey tools, said that the General Services Administration (GSA) has extended its contract through 2029. The company was originally awarded its GSA schedule in 2015.