March 16 (Reuters) - Drone maker AeroVironment ( AVAV )

said on Monday it has acquired Empirical Systems Aerospace, a

producer of unmanned aircraft systems and advanced air mobility

platforms, in a cash-and-stock deal valued at about $200

million.

ESAero will operate as a subsidiary of AeroVironment ( AVAV ),

reporting into its precision strike and defense systems group,

which makes Kamikaze drones, or loitering munitions.

The deal unfolds against a backdrop of increased defense

outlays and growing adoption of precision drones amid ongoing

global conflicts, and follows AeroVironment's ( AVAV ) $4.1 billion

purchase of space and defense engineering firm BlueHalo in 2025.

"ESAero's capabilities are vital to addressing the urgent

demands of a fast-growing defense tech market," said

AeroVironment ( AVAV ) CEO Wahid Nawabi.

Last month, two sources exclusively told Reuters that the

U.S. Army deployed AeroVironment's ( AVAV ) LOCUST laser counter-drone

weapon system near El Paso International Airport, leading to a

seven-hour airspace shutdown.

That, along with another incident later in February where

the U.S. military errantly shot down a government drone with a

laser-based anti-drone system, last week prompted a top Democrat

on the U.S. Senate Commerce aviation subcommittee to call for a

government investigation into the events.