---
title: Defense Electronics M&A Transactions - January 2026
description: Stay updated on the latest defense electronics insights, M&A deals, and valuation trends in the sector with the January 2026 edition of Defense Electronics Monthly.
---

[Segment Reports](https://blog.janescapital.com/segment-reports)

# [Defense Electronics M&A Transactions - January 2026](https://blog.janescapital.com/segment-reports/defense-electronics/01-2026)

 Written by [Stephen Perry](https://blog.janescapital.com/segment-reports/author/stephen-perry) | February 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. |

 

[View full post](https://blog.janescapital.com/segment-reports/defense-electronics/01-2026)

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