Aerospace, Defense & Space: Q4 2024 M&A Market Update
Published March 27, 2025
Q4 2024 AD&S M&A Market Update: Momentum Builds Across Sectors
The Aerospace, Defense & Space (AD&S) M&A market continued to show steady growth in Q4 2024. Key growth drivers included strong demand for technologies and components tied to defense and space programs, as well as a sustained backlog in commercial aircraft. Despite uncertainties in production build rates, M&A in aftermarket services remained robust due to delays in new aircraft output.
Overview
Meridian Capital’s Aerospace, Defense & Space team has extensive experience within the sector having completed 25+ transactions in the industry.
The coverage team possesses deep industry relationships with leading acquirers in the space and is up-to-date on the latest sector trends and considerations.
Meridian Capital is pleased to present its Q4 2024 Aerospace, Defense & Space M&A Market Update.
M&A Activity Update
M&A Commentary
- AD&S M&A activity reached 163 transactions in Q4-2024, representing a ~11% increase over Q4-2023 deal volume
- In 2024, the AD&S market averaged 151 M&A transactions per quarter, with total transaction volume for the year up 3.5% year-over-year, showing a slight uptick in M&A activity
- Strong demand for technologies and components supporting defense and space programs continue to drive M&A activity within the sectors
- Commercial aircraft backlogs remain strong providing a positive outlook despite continued uncertainty around the timing of build-rate increases. Aftermarket components and services remain active for M&A stemming from new aircraft production delays
- Strategic investors showed strong acquisition appetite in 2024, representing 54.9% of deals, up from 51.4% in 2023
Global Deal Count by Quarters (2022-2024)
Global Deal Count by Investor Type (2022-2024)
Source: Pitchbook as of 12/31/2024
Select M&A Transactions
| Date | Target | Acquirer | Target Description |
|---|---|---|---|
| Dec-24 | Piaggio Aerospace | Baykar | Manufacturer of unmanned aerial systems, aircraft, and aero-engines intended for private aircraft operators, governments, and the military. |
| Dec-24 | Lilium eAircraft | Mobile Uplift Corporation | Manufacturer of electric jets designed to optimize regional air mobility. |
| Dec-24 | Air Works India | Adani Enterprises | Provider of maintenance, repair, and overhaul services for the airline industry. |
| Dec-24 | Safran (Electromechanical Actuation Business) | Woodward | Manufacturer of electronics and defense electromechanical actuation components. |
| Dec-24 | Valley Forge | STS Metals | Manufacturer of forging, machining, and heat treating services intended to serve primarily the aerospace and defense industry. |
| Dec-24 | Aciturri Aerostructures | Sonaca | Manufacturer of aerostructures intended for original equipment manufacturers, specializing in designing, industrialization, and integrating advanced engineering and industrial development. |
| Dec-24 | Inertial Labs | Viavi Solutions (NAS: VIAV)(Oleg Khaykin) | Developer and manufacturer of position and orientation technologies designed for assistance in aerospace, and defense applications. |
| Dec-24 | Wyvern Technologies | Extant Aerospace | Manufacturer of aerospace and defense electronics and technology components intended to serve the military, defense agencies, and military contractors. |
| Dec-24 | AirBorn | Molex | Manufacturer of specialty electronics, including electronic interconnects, flexible circuit boards, cable assemblies, electronic assemblies and power supplies. |
| Dec-24 | AvAir | Corrum Capital Management | Distributor of aftermarket aviation parts intended to serve the aircraft industry. |
| Dec-24 | Kellstrom Aerospace | VSE | Distributor of engines, aircraft, and spare parts intended to serve the commercial aerospace engine aftermarket. |
| Dec-24 | Intuitive Machines | Boryung | Provider of space products, supplies, and services to support sustained robotic and human exploration to the Moon, Mars, and beyond. |
| Nov-24 | Loc Performance | Rheinmetall | Manufacturer of machined components intended for various industries including aerospace. |
| Nov-24 | 3S Northumbria | ExoAnalytic Solutions | Provider of space technology and data integration services focused on space situational awareness. |
| Nov-24 | Spacecraft Components | Mobix Labs | Manufacturer and distributor of cylindrical connectors catering to the railways, environment markets, transport, military and aerospace industries. |
| Nov-24 | Airplane Painter | Ciclad | Provider of painting services intended to enhance the appearance and performance of aircraft. |
| Nov-24 | BlueHalo | AeroVironment | Manufacturer of advanced engineering products for the national security community. |
| Nov-24 | ConRes Test Equipment | TestEquity | Distributor of test equipment catering to aerospace, defense, automotive, education, telecom and electrical power and testing industries. |
| Nov-24 | Fiber Materials | Tex Tech Industries (Arlington Capital Partners) | Developer and manufacturer of composite materials intended for the defense sector. |
| Nov-24 | Diamond Antenna and Microwave | Artemis Capital Partners | Developer of radio frequency (RF) and electro-mechanical systems catering to government and prime integrator customers. |
| Date | Target | Acquirer | Target Description |
|---|---|---|---|
| Nov-24 | Dynamit Nobel Defence | Diehl Stiftung | Designer and manufacturer of defense products for military and commercial uses. |
| Nov-24 | Testek Solutions | Branford Castle Partners | Designer and manufacturer of mission-critical test equipment for commercial and military aviation industries. |
| Nov-24 | Goodrich Hoist & Winch | Signia Aerospace | Manufacturer and provider of rescue hoists and cargo winches utilized by civil and military operators worldwide. |
| Nov-24 | Aerojet Ordnance Tennessee (L3Harris) | BWXT Technologies | Provider of advanced specialty materials, fabrication and high-strength alloy manufacturing, including depleted uranium engineered products. |
| Nov-24 | Axillon Aerospace (Parker Hannifin) | SK Capital | Provider of engineered carbon fiber composite components and fuel containment solutions for the defense and commercial aerospace markets |
| Nov-24 | Velocity One | Emcore | Manufacturer of aviation and aerospace components. |
| Nov-24 | LeoStella | BlackSky | Manufacturer of satellites designed for geospatial intelligence. |
| Nov-24 | Excelitas Technologies | Teledyne Technologies | Manufacturer of advanced electronic equipment catering to the defense and space industry. |
| Nov-24 | Brim Aviation | Wexford Capital Partners | Provider of helicopter services designed to meet the needs of a diverse range of industries. |
| Nov-24 | Micro Nav | Indra Sistemas | Manufacturer and supplier of air traffic control systems catering to the aerospace and defense sectors. |
| Nov-24 | Micropac Industries | Teledyne Technologies | Manufacturer and distributor of a range of hybrid microelectronic circuits, solid-state relays (SSRs), power controllers, and optoelectronic components and assemblies. |
| Nov-24 | Onboard Systems Hoist & Winch | Signia Aerospace (Arcline) | Developer and manufacturer of helicopter rescue hoists and aircraft cargo winches intended to meet mission needs. |
| Nov-24 | Aero Instruments & Avionics | Aero Accessories (ATL Partners) | Provider of avionics and instrumentation maintenance services intended for commercial, military, and regional aircraft platforms. |
| Nov-24 | Aeronix | Tinicum | Provider of data transfer, signal analysis and communications products and related engineering services intended primarily for the defense industry. |
| Nov-24 | Q-Par Antennas USA | Solid State | Manufacturer and designer of microwave antennas intended to offer antenna systems and related technologies primarily for defense and security applications. |
| Oct-24 | Azure Summit Technology | CACI International | Operator of an RF engineering company intended to serve various industries including defense. |
| Oct-24 | Terran Orbital | Lockheed Martin | Manufacturer of satellite products primarily serving the aerospace and defense industries. |
| Oct-24 | Semmco | HAKI Safety | Manufacturer and designer of safe access platforms for aircraft and train maintenance. |
| Oct-24 | Antenna Research Associates (Gladstone Capital) | OceanSound Partners | Supplier of antenna solutions to the electronic warfare, law enforcement, military communications, satellite communications and radar markets. |
| Oct-24 | Concordia Technologies | Special Aerospace Services (Godspeed Capital) | Provider of missile and hypersonic weapons defense, sensor design and evaluation, and modeling and simulation technologies. |
| Date | Target | Acquirer | Target Description |
|---|---|---|---|
| Oct-24 | Flight Operations System (Collins Aerospace) | Portside | Provider of scheduling, trip planning, and reporting for business aviation operators, providing software that enhances operational efficiency and enables real-time management. |
| Oct-24 | TurbineAero | Snow Peak Cpaital | Provider of aftermarket services and repairs for aeroengine components and other aerospace applications. |
| Oct-24 | Hoffman Engineering | Branford Castle Partners | Provider of proprietary situational awareness solutions for mission-critical aerospace and defense applications. |
| Oct-24 | Japa Aero Design | Sunaero (DealbyDeal Invest) | Provider of aircraft maintenance services for structures and cabins. |
| Oct-24 | RJAero | Sunaero (DealbyDeal Invest) | Manufacturer of specialized maintenance and repair services for the aircraft industry. |
| Oct-24 | Britten-Norman | Beechlands Enterprises | Manufacturer and provider of aircraft and related services. |
| Oct-24 | Radiance Ignite Technologies | Ignite Fueling Innovation | Provider of technology development services intended to empower military forces and safeguard national interests. |
| Oct-24 | Digital Receiver Technology | Thales Defense & Security | Manufacturer of software-defined radio systems intended for the intelligence, defense, and homeland security communities. |
| Oct-24 | Mitchell PMA | Jet Parts Engineering (Vance Street Capital) | Manufacturer of aircraft parts intended to enhance airplane safety and efficiency. |
| Oct-24 | Barnes Group | Apollo Global Management | Manufacturer of precision parts, products, and systems for critical applications in end markets including aerospace and military segments. |
| Oct-24 | Merc Aerospace | Pursuit Aerospace (Greenbriar Equity Group) | Manufacturer of precision components intended to serve the aerospace, defense, petrochemical and energy industries. |
| Oct-24 | Prescott Precision Die | Pursuit Aerospace (Greenbriar Equity Group) | Manufacturer of tight tolerance turbine engine components intended for the aerospace and defense industry. |
| Sep-24 | F3 Aerospace | Genesys Industries | Manufacturer of precision aerospace components designed for various aerospace applications. |
| Sep-24 | Icon Aerospace | Precision Aviation Group (GenNx360 Capital Partners) | Operator of the repair station intended for the aviation industry. |
| Sep-24 | TAG Aero | Precision Aviation Group (GenNx360 Capital Partners) | Provider of auxiliary power units (APUs) sales and repair services intended for commercial, regional and military aviation sectors. |
| Sep-24 | Veth Research Associates | AEVEX Aerospace (Madison Dearborn Partners) | Developer of advanced navigation, tracking, and avionics systems designed for government and commercial clients in the aerospace industry. |
| Sep-24 | BOLAB Systems | AB Dynamics | Manufacturer of electronics testing products catering to aerospace, defense and automotive industries. |
| Sep-24 | Integrated Launcher Solutions | Next Dynamics | Manufacturer and developer of autonomously operated platform-agnostic remote launchers intended to serve the defense, and other industries. |
| Sep-24 | Flightkeys | Insight Partners | Developer of flight management software designed to precisely meet the emerging requirements of airline operations. |
| Sep-24 | Rolls-Royce Holdings | Fairbanks Morse Defense (Arcline) | Provider of naval propulsors and handling business services intended to serve next-generation vessels. |
Source: Pitchbook and MergerMarket as of 12/31/2024; Meridian Research
Meridian Capital's Aerospace, Defense & Space Transaction Experience
*Note: Includes transactions completed by Meridian bankers while at previous firms
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