Mach Industries acquires Exquadrum for $50M in defense tech deal

Mach Industries has acquired Exquadrum in a $50 million cash-and-equity deal. The Huntington Beach-based defense startup said the transaction folds the solid rocket motor company into its operations under the new name Mach Energetics. The acquisition gives Mach control over a key component in unmanned systems. The two companies connected last September at an MIT recruiting event. An Exquadrum customer overheard a Mach recruiter seeking a supplier and made introductions. Mach later acquired Exquadrum outright after beating out more than eight other buyers. Founder and chief executive Ethan Thornton said the acquisition marks an important next stage in Mach growth. He said the company will vertically integrate its supply chain across solid rocket motors, engines, radar and avionics to ensure the best product at the lowest cost. The domestic solid rocket motor market is controlled by Aerojet Rocketdyne and Northrop Grumman following decades of consolidation. The Pentagon awarded Anduril $43.7 million in February to expand domestic production. Mach Energetics plans to sell components, testing services and subsystems to other defense firms. All 85 Exquadrum employees are coming over with the company's IP, business lines and 70,000-square-foot facility in Victorville, California. The combined company has roughly 350 employees. Exquadrum co-founders Kevin Mahaffy and Eric Schmidt are taking leadership roles. Mach has five vehicle programs in various stages of development. It plans to enter production on at least three this year. The company has raised nearly $200 million in total, including a $100 million Series B last June at a $470 million valuation.