Fusion Technology ’s Post

The combination of BlueHalo and AeroVironment is being appropriately lauded as the creation of a next generation defense tech platform poised to challenge the major defense primes across a highly complementary portfolio of solutions . While I agree with this perspective, there are additional aspects of the deal that could have outsized impacts on the defense industry 1. BlueHalo's success under Arlington Capital Partners - evidenced by this sale and its impressive revenue growth - highlights the ability of Private Equity to have a substantial impact on our defense ecosystem. Building legitimate contenders in the hardware and solutions space and furthering defense tech innovation is simply not exclusive to venture capital backing. Hopefully, this combination will help the marketplace better understand what private capital, not just venture, can do to further mission. Platforms like BlueHalo can provide customers with winning solutions backed by the stability of profitable, enduring companies. They also provide founders and entrepreneurs with opportunities to accelerate growth, get multiple bites at the exit apple, etc. To me, the conversation around private capital in defense has been exhaustingly one-sided in its focus on venture capital and venture-backed startups. We need to better understand the full private capital stack (venture, growth, PE, credit, OSC, etc.) to build a better pipeline of companies growing from startup or small and bootstrapped to midsize contenders and beyond. 2. The combined BlueHalo and AeroVironment portfolio closely mirrors that of Anduril. While these two firms will likely become frequent competitors, their emergence as new defense primes pushes the boundaries traditionally dominated by large hardware primes and systems integrators. However, BlueHalo’s $4.1B enterprise value on ~$900M revenue (~4.6x EV/Sales) contrasts sharply with Anduril’s ~$14B valuation which likely sits somewhere in the +20x EV/Sales range. I am completely speculating here, but I doubt the TAM/market size, gross margins, top line growth rates, cost types, etc. are orders of magnitude different between these companies. As a classic "transaction comp" for Anduril, this acquisition, at least partially, exposes rampant overvaluations by investors in the defense tech world which risks undermining the defense tech ecosystem's credibility and stability long term.

A golden opportunity, for which IRDM is perfectly positioned…

We changed our name but not our goals! So, what are these #goals exactly❓   💡 Our vision is that 4iG Space and Defence Technologies – as a member of the 4iG Nyrt. Group – becomes a key Hungarian player in the #space and #defence industries both in the region and across Europe. We aim to exploit the #synergies within the Group's IT system integration and telecommunications businesses, while #maximizing the added value by disruptive technologies as well as the value generated for shareholders.   How do we achieve this in a nutshell❓ 💪 #Strength: 4iG is the first privately-owned Hungarian large enterprise in the space and defence sectors. The strong background and the available know-how provide the gravitational force that enables us to take on a leading role in the development of the Hungarian space and defence industries. 👌 #Value #creation: We carry out industry-focused R&D and product development activities with a strong emphasis on quality assurance and education. 🤝 #Cooperation: We look for – both domestic and international – partnerships with integrators, SMEs, universities, research institutes, as well as with global and national organizations. 👍 #Agility and #integrity: We operate with efficiency and discipline to meet our objectives.   🙏 And the #TEAM of course! Our highly skilled domestic and international experts, engineers and management take on this responsibility with confidence because we have the ability, know-how and decades of experience behind us!   And the #growth cannot stop – we are looking for professionals to #join our team within our borders and worldwide also! 🚀   "Strategy without tactics is the slowest route to victory. Tactics without strategy is noise before defeat.” (Sun Tzu – The Art of War)   Let's continue… !

Have you ever wondered what tech Defense Advanced Research Projects Agency (DARPA)'s Tactical Technology Office is interested in*? What's involved in working on a DARPA project? Don't miss the DARPA Connecting with TTO webinar on 12 June 2024. Aimed primarily at organisations who haven't worked with DARPA before, the webinar will provide an overview of the TTO, how to work with them and the objectives for their upcoming Board Agency Announcement. Register by 7 June at https://bit.ly/3URNhRs (* TTO is all about platform innovation, missionized autonomy, managing complexity, disruptive emergent tech & more)

National progress begins with collective self-reflection. By understanding our strengths and addressing our weaknesses, we can safeguard our sovereignty and build a stronger future for our nation. Join us at Arena Techsamana 2024, where we'll tackle critical topics often overlooked in mainstream discussions. https://bit.ly/arenatech25

Yes, true skill and resilience are revealed in rough waters, not calm seas. Building a product, platform, or service often requires time and patience, as success is the tip of the iceberg with immense effort hidden beneath. Always stay open to what the market and your customers are saying, and focus on solving the barriers your offering addresses. Sales will surely follow, as market acceptance evolves. Even with game-changing solutions, the market needs time to catch up. Sales is not just about pushing a product, but resonating with the challenges your market and customers face, and providing solutions—whether that’s now or 6 months down the line. Perseverance and hard work are key.

Another great video by Simon Sinek. The real test comes when waves get rough, and we can only judge the crew by how they perform in rough water. Ability to lead and get everyone on board during challenging times, with clear goals and ambition for all to achieve.

In a world where "seeing is believing" takes a backseat to "flying by the seat of our pants," the U.S. military has decided to give the phrase "leap before you look" a whole new meaning. https://lnkd.in/eb3YpgdS Picture this: an Osprey aircraft, the hybrid lovechild of a helicopter and an airplane, dives into the heart of controversy with the grace of a brick. After a dramatic splashdown off the coast of Yakushima last November, you'd think caution would be the word of the day. But no, the Pentagon, in a move that would make Evel Knievel nod in approval, has decided that the show must go on, safety concerns be darned. Now, let's pause to appreciate the situation here. The Pentagon, in its infinite wisdom, has basically said, "Sure, we don't quite know why our flying contraption decided to take a nosedive, but let's not get bogged down with details." Safety, after all, is paramount—just not paramount enough to prevent premature decisions. You see, despite an investigation that's about as clear as mud, the military brass has felt the unbearable pressure of not flying these majestic beasts. It's akin to telling a toddler, "We're not sure if the brakes on your tricycle work, but go ahead, the hill's not that steep." And so, with a collective shrug that could displace the Earth's axis, flights resume. It's like watching someone patch a leaking dam with bubble gum and hoping for the best. The logic here is bulletproof—figuratively speaking, of course, because as for the Osprey, well... The backstory reads like a blockbuster thriller, minus the satisfying conclusion. After the crash, the military grounded the Osprey fleet faster than you can say "oops." Investigations pinpointed a problematic part but unraveled like a mystery novel that lost the final chapter. Something about a prop-rotor and a gearbox that had seen better days, which, frankly, sounds like a mechanic's way of saying, "It's complicated." Despite these airborne enigmas, the military felt the itch to get back in the sky. After all, what's a little uncertainty among friends? The Navy, facing a transport dilemma, started eyeing other aircraft like a kid in a candy store, while the Marines made do with helicopters that, while reliable, just didn't have the Osprey's flair. It's like trading in a sports car for a minivan; practical, but it won't turn heads at the drive-thru. As we march towards a future where the Osprey will once again grace the skies with its presence, criticisms about transparency, priorities, and risk assessment rain down like confetti. Yet, the military's stance remains as steadfast as a toddler refusing to eat broccoli. "We can manage the risks," they assert, in the face of a narrative that could easily be titled "Famous Last Words." CONTINUED IN COMMENTS...