BlueHalo acquires underwater robotic tech provider

As BlueHalo moves to complete the sale of itself, the defense technology integrator has closed an acquisition that its eventual buyer will have in the fold after their combination’s anticipated completion.

BlueHalo on Friday disclosed its purchase of VideoRay, a maker of remotely-operated vehicles for use in underwater applications such as mine countermeasures and explosive ordinance disposal. Terms of the move were not disclosed.

VideoRay opened for business in 1999 and touts its flagship Mission Specialist Defender system as one of several underwater robotics systems designed to carry several types of sensors and payloads.

Pottstown, Pennsylvania-headquartered VideoRay has recorded approximately $13.2 million in unclassified prime contract revenue over the trailing 12 months.

GovTribe data indicates one of the company’s largest program is a production-other transaction agreement with the Navy. Under that potential $49 million contract, VideoRay will build and deliver Defender units for use in explosive ordnance disposal missions.

Of course, what VideoRay brings to the equation here will also be the case for when AeroVironment closes its acquisition of BlueHalo. All parties involved in the latter transaction expect to complete it in the first half of 2025.

AeroVironment is looking to bolster its lineup of uncrewed systems and technologies to counter those used by the U.S.’ adversaries, while the combined company is also poised to have a larger manufacturing posture in general for defense systems.

Houlihan Lokey and Sheppard Mullin acted as VideoRay’s exclusive financial adviser and legal counsel in the transaction, respectively.