Blackstone Inc. (NYSE:BX) on Thursday announced the launch of Falcata, a defense technology company formed through the acquisition and combination of TSC and Applied Systems Engineering.
The unified platform will focus on technologies used in missile defense and next-generation interceptor systems.
Falcata Targets Next-Generation Missile Defense
Falcata brings together capabilities across sensors, radar, precision guidance, GPS-denied navigation, intelligence, surveillance and reconnaissance, launchers and related technologies.
The company aims to help warfighters detect, track and neutralize threats across a range of operating environments.
Blackstone said its investment will support Falcata's engineering expansion, manufacturing capacity and workforce growth.
Bloomberg reported that Blackstone committed more than $1 billion in debt and equity to fund the acquisitions, citing people familiar with the matter.
Goldman Sachs served as exclusive financial advisor to Blackstone.
Lower-Cost Interceptors Gain Importance
Jonathan Moneymaker, chairman of Falcata, said recent conflicts have underscored the importance of lower-cost interceptors to U.S. national security.
He said producing more interceptors will require greater capacity across critical sensing, guidance, navigation and control technologies. Falcata aims to expand that capacity and supply the U.S. and its allies at scale.
Private Equity Steps up Defense Investment
Blackstone's investment comes as private equity firms increase their exposure to aerospace and defense.
Bloomberg reported that Blackstone has invested about $20 billion in defense and aerospace over the past five years, citing comments from Blackstone President Jon Gray in July.
In May, Carlyle Group Inc. (NASDAQ:CG) expanded its aerospace, defense, government and industrial capabilities through a dedicated middle-market investment platform targeting opportunities in the U.S. and Europe.
Admiral James Stavridis, vice chairman of Carlyle, said higher defense spending and military modernization are expected to drive long-term demand for advanced technologies and industrial capacity.
Blackstone Price Action
BX Price Action: Blackstone shares were up 2.37% at $114.90 at the time of publication on Friday, according to Benzinga Pro data.