Houlihan Lokey Advises VideoRay

Houlihan Lokey is pleased to announce that VideoRay has been acquired by BlueHalo, a portfolio company of Arlington Capital Partners (Arlington). The transaction closed in November 2024.

Founded in 1999, VideoRay is a leading provider of subsea robotics technologies and solutions for defense and commercial end-market applications. The company leverages decades of technology leadership and proprietary IP to deliver best-in-class robotics solutions that operate in the most demanding subsea conditions. With more than 4,000 remotely operated vehicles (ROV) fielded worldwide, VideoRay has set the standard for reliability and performance. The company’s flagship ROV, Mission Specialist Defender, is the preeminent expeditionary underwater platform for explosive ordnance disposal and mine countermeasures operations, underscoring its unmatched capabilities in demanding military marine environments. As a result, VideoRay is the sole source provider of ROVs to the U.S. Navy for its Maritime Expeditionary Standoff Response Program of Record.

BlueHalo is purpose-built to provide industry-leading capabilities in the areas of Space, C-UAS and Autonomous Systems, Electronic Warfare and Cyber, and AI/ML. The company develops and brings to market next-generation capabilities to support customers’ critical missions and national security.

Arlington Capital Partners is a Washington, D.C.-area private investment firm specializing in government-regulated industries. The firm partners with founders and management teams to build strategically important businesses in the government services and technology, aerospace and defense, and healthcare sectors. Since its inception in 1999, Arlington has invested in over 175 companies and is currently investing out of its $3.8 billion Fund VI.

Houlihan Lokey served as the exclusive financial advisor to VideoRay and assisted in structuring and negotiating the transaction on its behalf. This transaction underscores the firm’s continued global leadership and deep expertise in the defense technology sector. Since 2020, Houlihan Lokey’s Aerospace & Defense practice has closed more than 70 transactions worth over $13 billion in enterprise value. With a staff of approximately 20 financial professionals, Houlihan Lokey’s Aerospace & Defense practice is among the largest dedicated industry banking teams worldwide.

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