Blackstone announces $1B investment to launch defense technology company

Blackstone announces $1B investment to launch defense technology company

Blackstone BX continued its bets on defense and aerospace companies with a $1B investment to launch Falcata as the U.S. and its allies confront a rapidly changing threat environment.

The defense technology company will be formed through the acquisition and combination of TSC and Applied Systems Engineering under a unified platform.

Blackstone has committed over $1B in debt and equity for the acquisitions, people familiar with the matter told Bloomberg. More companies are expected to be acquired for the Falcata platform.

"Recent conflicts have demonstrated the need for defensive systems that can deliver both effectiveness and volume, increasing demand not only for more affordable interceptors, but also for the critical technologies required to produce them," BX said in a statement.

The alternative asset manager has invested $20B in defense and aerospace in the past five years, and the scale and pace of that investment are expected to increase from here, Bloomberg News reported, citing President Jon Gray.

In May, Carlyle Group CG had also announced an expansion of its aerospace, defense and government, and industrial teams through a dedicated middle-market platform.

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