Government Services & Technology

Arlington Capital Partners’ Portfolio Company, BlueHalo, Announces the Acquisition of Citadel Defense

Washington, DC, November 8, 2021 – Arlington Capital Partners (“Arlington”) today announced that its portfolio company, BlueHalo (the “Company”), a leading provider of advanced engineering solutions and technology to the national security community, has acquired Citadel Defense Company (“Citadel”).

Headquartered in San Diego, CA, Citadel develops advanced counter unmanned aerial systems (“cUAS”) technology utilized by customers within the Department of Defense and Intelligence Community, as well as civilian, commercial, and international markets.  Founded in 2016, Citadel’s team of engineers and data scientists has developed best-of-breed cUAS products that leverage proprietary artificial intelligence and machine learning (“AI/ML”) algorithms to enable operators to locate drone threats, track flight paths, and autonomously neutralize threats.  Citadel’s industry-leading solutions create a distinct operational advantage for servicemen and servicewomen on the front lines.  When defending against drone swarms and difficult-to-detect threats, Citadel’s AI/ML-powered systems allow operators to identify and terminate enemy UAS threats with unmatched speed, accuracy, and reliability.

BlueHalo is a rapidly expanding national security platform with market-leading capabilities spanning directed energy, cUAS, space superiority, space technology, advanced RF, autonomy, and cyber & SIGINT.  The acquisition of Citadel complements BlueHalo’s directed energy and layered perimeter defense capabilities where the company delivers a full suite of products including the Locust Laser Weapon System and Argus Perimeter Security Solution.  Citadel’s cUAS capabilities coupled with BlueHalo’s existing portfolio of proprietary technology will uniquely enable the company to deliver multi-modal, unified cUAS solutions that support the warfighter and protect critical infrastructure.

“Citadel has established itself as a leader in the cUAS market and continues to innovate at a pace necessary to stay ahead of the rapidly evolving threat environment.  We are incredibly excited to partner with the Citadel team as we continue to expand our cUAS capabilities and deliver transformative, market leading solutions to our customers,” said Jonathan Moneymaker, CEO of BlueHalo. “The combination of Citadel and BlueHalo’s unique technologies, deep mission intimacy, and systematic approach to innovation will accelerate our technology roadmap and allow us to rapidly field technologies critical to the warfighter.”

David Wodlinger, a Partner at Arlington Capital Partners, said “The increasing sophistication and widespread availability of UAS represents a critical and growing threat vector that will increasingly become a top priority for more and more organizations. Citadel has developed an innovative cUAS solution that we believe counters this threat in a differentiated way, positioning the Company to capture an outsized share of this large and growing market.”

Chris Williams, CEO of Citadel, shared “Under the BlueHalo platform, our new and existing customers will benefit from an expanded set of capabilities, talent, and resources to achieve greater mission impact.  We are excited to join an innovative company that we know will continue to push the boundaries of what is possible.”

Henry Albers, a Vice President at Arlington Capital Partners, said “The Citadel team is passionate about developing cutting-edge technology to address novel security threats, making this acquisition an excellent fit from a cultural perspective. We are excited to welcome these talented engineers to the organization as well as incorporate Citadel’s technology into BlueHalo’s rapidly expanding portfolio of proprietary solutions.”

About BlueHalo

BlueHalo is purpose-built to provide industry-leading capabilities in the domains of Space Superiority and Directed Energy, Air and Missile Defense and Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance (C4ISR), and Cyber and Intelligence. BlueHalo focuses on inspired engineering to develop, transition, and field next generation capabilities to solve the most complex challenges of our customer’s critical missions and reestablish our national security posture in the near-peer contested arena. www.bluehalo.com

About Arlington Capital Partners

Arlington Capital Partners is a Washington, DC-based private equity firm that is currently investing out of Arlington Capital Partners V, L.P., a $1.7 billion fund. The firm has managed approximately $4.0 billion of committed capital via five investment funds. Arlington is focused on middle market investment opportunities in growth industries including government services and technology, aerospace & defense, healthcare, and business services and software. The firm’s professionals and network have a unique combination of operating and private equity experience that enable Arlington to be a value-added investor. Arlington invests in companies in partnership with high quality management teams that are motivated to establish and/or advance their Company’s position as leading competitors in their field. www.arlingtoncap.com

Contact
David Wodlinger and Henry Albers
Arlington Capital Partners
5425 Wisconsin Avenue, Suite 200
Chevy Chase, MD 20815
202-337-7500