Blackstone's new defense tech company and more capital markets action to highlight

Falcata

This new defense technology company has taken flight with the backing of Blackstone, which formed it through the acquisition and combination of TSC and Applied Systems Engineering.

Falcata describes its tech portfolio as including seekers, radar technologies, guidance electronics, control actuation systems, GPS-denied navigation, ISR (intelligence, surveillance and reconnaissance), and launchers.

Falcata’s strategy centers around bringing those technologies together to cover the entire guidance chain for interceptors, which are necessary for fending off aerial threats such as drones and missiles.

Brandon Wolfson, chief executive of TSC since 2018, has been appointed CEO of the combined company. Wolfson is a 25-year veteran of TSC.

Jonathan Moneymaker, who led BlueHalo as CEO through its sale to AeroVironment in 2025, has been appointed chairman of the board of directors at Falcata.

Goldman Sachs is the exclusive financial adviser to Blackstone, whose legal counsel on the transaction is Simpson Thacher & Bartlett LLP.

Fortem Technologies

The maker of sensors and software for securing airspace from unauthorized drones has completed a $50 million Series B capital raise to accelerate its manufacturing and deployment efforts.

Lockheed Martin led the Series B round, which closed six months after the world’s largest investment company invested $25 million into Fortem as part of the initial tranche. Unusual Machines and other investors also participated.

Fortem opened for business in 2016 and specializes in counter-unmanned aerial systems technology, which includes radar sensors and command-and-control software that use artificial intelligence. The company’s DroneHunter system works as an autonomous interceptor in layered defense systems.

With this newfound investment, Fortem will work to expand its capacities for manufacturing and deploying its SkyDome family of systems for monitoring civilian airspace.

In August, Fortem became the only small business to receive selection for the Homeland Security Department’s potential $1.5 billion C-UAS contract.

Fortem’s federal portfolio also includes an Army contract to defend installations and a DHS award for protecting 2026 FIFA World Cup venues. Lockheed uses Fortem’s technology for a broader C-UAS architecture called Sanctum.

Hertha Metals

This steel producer has collected $133.65 million in Series A capital from investors, including a $65 million equity investment from the U.S. government.

Hertha Capital was founded in 2022 by CEO Dr. Laureen Meroueh to product high-purity iron that is used to manufacture rare earth magnets, which are widely used in defense and technology sectors.

The Defense Department is backing Hertha Metals through the Industrial Base Analysis and Sustainment program, which is intended to help address supply chain vulnerabilities and develop a skilled industrial workforce.

DOD’s investment in Hertha Metals is part of larger efforts by the U.S. government to establish domestic sources for the iron needed for magnets, substantially all of which are currently imported.

Hertha Berlin is using the newfound capital to build Hertha Chalyz, a facility for producing 10,000 tons of steel-grade and magnet-grade high purity iron.

Khosla Ventures and Doerr Capital co-led the Series A round with participation from CEV, Pear Ventures, Gates Frontier, Niterra SUISO no MORI Fund (General Partner: Global Brain), Toyota Ventures and Siemens Financial Services.

Varda Space Industries

This in-space manufacturing startup has fetched $250 million in Series D capital from investors to support the next phase of its strategy focused on pharmaceuticals and hypersonic research.

Varda opened for business in 2021 and has achieved six successful launches of its W-series vehicle since then.

The company has predominantly focused on drug manufacturing in space as a more novel approach that crystallizes active ingredients in ways impossible on Earth.

Varda’s orbital capsule is designed to enter the atmosphere at 18,000 miles per hour and hit a speed of Mach 25+ before parachuting back to Earth.

A dozen more launches and re-entries of the W-series vehicles are planned through 2028.

Lux Capital and Natural Capital led the Series D round. Other participants included Founders Fund, Khosla Ventures, Caffeinated Capital, General Catalyst, 8090 Industries, Giant Step, and Also Capital.

Astro Digital

This satellite maker has found a transaction partner to help take it public against a backdrop of heightened investor interest in space and defense companies.

Astro Digital plans to merge with Proem Acquisition Corp. I, a blank check or Special Purpose Acquisition Company, and then list on the NASDAQ stock market.

All parties involved expect the listing to happen in the first quarter of 2027, while Astro Digital’s co-founder and CEO Chris Biddy will continue to lead the company.

Astro Digital opened for business in 2018 and says it has delivered nearly 40 satellites to 30 customers, including NASA and the Defense Department. The satellites are designed for missions such as Earth observation, communications, space infrastructure and defense.

Astro Digital posted $34 million in revenue for 2025 and expects to record $50 million in sales this year with an eye toward hitting $500 million on the top line by 2032. The SPAC merger values Astro Digital at a pro forma post-money enterprise value of approximately $587 million, while also giving the company $180 million in gross proceeds assuming no redemptions.

That $180 million figure includes $130 million held in Proem's trust account and $50 ​million from PIPE investments ​led by Proem Asset Management and Leon Capital Group.

Broadfield US is legal counsel to Astro Digital. Clear Street is financial and capital markets adviser to Proem, and Loeb & Loeb LLP is legal counsel to Proem.

RedLattice

This developer of cyber intelligence technology has also agreed on a transaction that will take it to the public markets with the intent of listing before the year ends.

RedLattice plans to merge with blank check company Bold Eagle Acquisition Corp. and then list on the NASDAQ stock market under the ticker symbol “REDL.”

All parties involved expect the listing to happen before the end of this year, while CEO Andy Boyd will continue to lead RedLattice.

RedLattice is backed by the private equity firm AE Industrial Partners, which acquired majority ownership of the company in 2023. AE Industrial will continue to be RedLattice’s largest shareholder after transaction closes.

RedLattice opened for business in 2012 and designs its tech to help government agencies with efforts in lawful intercept, research and intelligence gathering. The company touted $267 million in revenue for the 12-month period ended June 30 and a contract backlog of roughly $200 million.

The transaction values RedLattice at a pre-money enterprise value of $1.25 billion. RedLattice expects to receive up to $610 million in gross proceeds, a figure that includes $335 million in committed capital from new and existing investors, plus $275 million from Bold Eagle’s trust account assuming no redemptions.

Goldman Sachs is the exclusive financial and capital markets adviser to Bold Eagle. Jefferies is the exclusive financial and capital markets adviser to RedLattice. Goldman Sachs and Jefferies LLC are also the placement agents. Kirkland & Ellis LLP is legal adviser to RedLattice, White & Case LLP is legal advisor to Bold Eagle, and Davis Polk & Wardwell LLP is legal adviser to the placement agents.