Mach Industries Acquires Exquadrum for $50 Million in Cash and Equity

Mach Industries acquired Exquadrum in a $50 million cash-and-equity deal, the Huntington Beach-based defense startup told TechCrunch. Exquadrum has been rebranded as Mach Energetics and folded into Mach’s operations. The two companies first connected last September when an Exquadrum customer at an MIT recruiting event overheard a Mach recruiter mention the company was seeking a solid rocket motor supplier.

Mach became a customer and later acquired the company outright, beating out more than eight other potential buyers.

Thornton said the acquisition marks an important next stage in Mach’s growth. He stated that Mach plans to vertically integrate its supply chain across solid rocket motors, engines, radar, and avionics to deliver products at lower cost. Thornton noted that in many areas of the defense industrial base, components are too expensive, lack performance, or have lead times stretching years.

Vertical integration is therefore required, he said.

85 Exquadrum employees are joining Mach, along with the company’s intellectual property, business lines, and 70,000-square-foot facility in Victorville, California. The combined company now has roughly 350 employees. Exquadrum co-founders Kevin Mahaffy and Eric Schmidt are taking leadership roles within Mach Energetics and the broader organization.

Mach has five vehicle programs in development, including Viper, a jet-powered VTOL; Glide, a high-altitude strike glider; Stratos, an airborne surveillance platform; Dart, a low-cost counter-drone interceptor; and Pike, a long-range strike munition.

The company plans to enter production on at least three this year. Mach said the acquisition improves unit economics across its programs at the moment it is beginning to scale. Mach has raised nearly $200 million in total funding, including a $100 million Series B last June led by Bedrock Capital, Khosla Ventures, and Sequoia Capital, at a valuation of $470 million.