Northern Virginia defense contractor acquires aerospace startup in $4B deal

Capital keeps flowing in the DMV as 2024 wraps up. 

Throughout the fall, major companies and startups announced new investments, and an established defense contractor acquired a local firm. DC also scored millions to remodel and improve Union Station. 

Keep reading to get the details on those and more Money Moves in the region. But first, check out our monthly look at which companies are hiring for tech jobs in the area.

Publicly traded defense tech company acquires nearby startup

Arlington’s AeroVironment announced its purchase of BlueHalo, also based in Arlington, in an all-stock transaction valued at $4.1 billion. 

AeroVironment specializes in robotics and software analytics for the Department of Defense and other government agencies.

BlueHalo, founded in 2019, primarily works in space technology, developing drones and laser weapon systems. Per an announcement, this acquisition will expand AeroVironment’s product offerings and customer base. 

“BlueHalo not only brings key franchises and complementary capabilities, but also a wealth of technologies, diverse customers and exceptional talent to AV,” said Wahid Nawabi, AeroVironment's chairman, president and CEO. “Together, we will drive agile innovation and deliver comprehensive, next-generation solutions designed to redefine the future of defense.”

BlueHalo is majority-owned by the private equity firm Arlington Capital Partners. That firm will “retain a significant ownership” of the merged company, according to the press release. 

The deal is expected to close during the first half of 2025. 

Soil data startup raises $24 million

EarthOptics, based in Arlington, scored an investment led by Conti Ventures and The Production Board, with participation from Leaps by Bayer, S2G Ventures, Middleland Capital’s VTC Ventures and several other funders. 

Created in 2018, the company provides soil sensing technologies to inform farmers about soil health. With these new funds, leaders at EarthOptics plan to expand the customer base and build out its technology. 

"This latest round of funding is a testament to our investors' confidence in our vision and our ability to deliver groundbreaking solutions that transform how farmers and ranchers interact with their soil," said CEO Lars Dyrud.

This investment of $24 million follows a merger between EarthOptics and the California soil analytics firm Pattern Ag announced in August. 

DC scores funding to improve Union Station

The city announced it received two grants from the Federal Railroad Administration, totaling about $82 million, to expand and modernize the station and address “immediate safety and operational needs.”

It’s part of a greater investment of $1.5 billion from the White House to upgrade rail infrastructure across the country. 

“By modernizing this vital hub, we’re not only improving the travel experience for millions of passengers but also strengthening our local economy and creating new opportunities for District residents,” said DC Mayor Muriel Bowser in a press release. 

Other DC-area raises and awards

• National security contractor Two Six Technologies landed a $4 billion decade-long contract with the Defense Threat Reduction Agency to conduct research and maintenance of the Department of Defense’s “Combating Weapons of Mass Destruction objectives.”
• Ashburn’s RiPSIM Technologies, a digital SIM card startup, announced a $5 million seed round. 
• Supply chain tech firm Interos in Arlington nabbed $40 million from the New York investment firm Blue Owl Capital, the Washington Business Journal reported. 
• The nonprofit Standards Coordinating Body for Gene, Cell and Regenerative Medicines and Cell-Based Drug Discovery, based in Gaithersburg, received $1.5 million to develop programming and curricula for workers in regenerative medicine. The award comes from the federal National Institute of Standards and Technology, which is also based in Gaithersburg. 
• Climate tech company Hydrosat won a $650,000 contract with the National Oceanic and Atmospheric Administration for climate monitoring work. 
• Maryland-founded startup investor TEDCO announced nearly $7 million of awards to the first recipients of its Equitech Growth Fund program. Those awardees include:
  • TCecure ($786,216) and The Coding School ($250,000) in Prince George’s County
  • The Henry M. Jackson Foundation ($904,237), the KID Museum, Escalate USA and Worksource Montgomery Inc. ($250,000 each) in Montgomery County
• Montgomery County officials announced a total of $10 million that it plans to grant via two new programs: the $7 million Technology Innovation Fund, which will offer awards worth up to $200,000 for promising tech companies; and the $3 million Founders Fund, which awards as much as $100,000 to entrepreneurs from marginalized communities. 
• The Washington Business Journal reported that Arlington-based Ask Sage raised a $17 million Series A, with participation from Silicon Valley investors Sapphire Ventures (the round’s leader) and Mucker Capital. 
• AI-powered IT help desk solution provider Fixify closed a $25 million Series A, which will be used to hire more people and scale product development. 

• Accenture Federal Services, the government contracting giant based in Arlington, won a task order to provide cloud services to the US Air Force. The job is valued at $1.6 billion. 

More moves found in Securities and Exchange Commission filings

• $2 billion for DC’s JUUL Labs.
• $51 million for Arlington’s PowerUp Technology. 
• $16.7 million for Potomac’s Pep2Tango Therapeutics.
• $1 million for DC’s Lumber Manufactory.