Defense Electronics M&A Transactions - January 2026

Download and read the January 2026 issue of the Defense Electronics Monthly, covering the latest M&A deal news and valuation trends in the defense electronics sector, including activity in segments such as C4ISR and electronic warfare, rugged electronics, RF & microwave, embedded computing, interconnects, microelectronics & semiconductor and test & measurement. Sign up for the Defense Electronics Monthly distribution list to stay up-to-date on the headline acquisitions impacting your market and the current dynamics of the publicly traded strategic companies within the industry.

Key Defense Electronics Deals Announced

Target	Buyer	Description
Space Propulsion & Power Systems Business		Target: Canoga, CA-based Space Propulsion & Power Systems business specializes in the design, development, and production of high performance electric, mono-propellant & bi-propellant rocket engines and systems, and launch vehicle propulsion systems to private sector, U.S. federal, and international aerospace, defense, and space exploration markets. Buyer: Boca Raton, FL-based AE Industrial Partners is a private equity firm focused on investing in aerospace, defense, and industrial technology businesses. The company partners with management teams to support operational improvement, strategic growth initiatives, and long-term value creation across complex technical markets. Terms: Transaction announced on January 5, 2026. AE Industrial has announced that they plan to acquire a 60% controlling interest in the business, resulting in an implied TEV of $845M.
		Target: New Haven, CT-based Quantum Circuits is a developer of error-corrected superconducting gate-model quantum computing systems for defense and U.S. federal government markets. The company's platform utilizes a Dual-Rail Qubit with built-in error detection and control flow and features a programming interface for developing new algorithms and exploring quantum in novel ways. Buyer: Palo Alto, CA-based D-Wave Quantum develops quantum computing systems, software, and cloud-based services designed to solve complex optimization and computational problems. The company focuses on delivering accessible quantum and hybrid computing capabilities for commercial and government users. Terms: Transaction announced on January 7, 2026. Purchase price was $550M.
		Target: United Kingdom-based MARSS is a developer of AI-enabled joint multi-domain command and control systems for private sector, U.S. federal, and international government markets. The company's AI-powered IoT platform, NiDAR Core, provides a turnkey solution that fuses intelligence and surveillance to grant 360° situational awareness in a single tactical picture. Buyer: Australia-based Electro Optic Systems develops advanced electro-optical and space technologies including remote weapon stations, space domain awareness systems, and satellite tracking solutions. The company supports defense and space customers with integrated systems designed for mission-critical operations in contested environments. Terms: Transaction announced on January 11, 2026. Purchase price is expected to be $153M, consisting of $36M cash-at-close and $117M through a potential earnout comprised of cash and EOS shares based on performance milestones through May 31, 2027.
		Target: Elmsford, NY-based SEEQC is a developer of superconducting technologies for quantum-based systems in private sector and U.S. federal government aerospace and defense markets. The company's technologies are utilized in scalable fault-tolerant quantum computing, quantum communications, and quantum simulators. Buyer: New York, NY-based Allegro Merger Corporation is a special purpose acquisition company formed to pursue business combination opportunities in technology-enabled and industrial sectors. The company focuses on identifying and partnering with growth-oriented businesses through a public market transaction structure. Terms: SPAC deal announced on January 16, 2026. Terms not disclosed.