Mach Industries Acquires Rocket Motor Startup Exquadrum

Three-year-old Mach Industries has finalized the acquisition of solid rocket motor startup Exquadrum for $50 million in a cash-and-equity deal. Exquadrum has been fully integrated into Mach's operations and rebranded as Mach Energetics, granting Mach direct control over a critical component for modern unmanned systems.

The acquisition aims to bolster Mach's vertical integration strategy. CEO Ethan Thornton stated that this move is essential for controlling the supply chain of solid rocket motors, engines, radar, and avionics to deliver superior products at a lower cost, addressing component unavailability and long lead times in the defense industry.

Mach Energetics plans to offer components, testing services, and subsystems to other defense firms, positioning itself as infrastructure for the broader defense tech industry. All 85 Exquadrum employees, its intellectual property, and its 70,000-square-foot facility in Victorville, California, are now part of Mach, which now employs approximately 350 people.

This acquisition aligns with other defense tech startups focusing on owning their supply chains. Mach has five vehicle programs in development, including VTOLs and strike munitions, expecting to enter production on at least three this year. The deal is anticipated to improve unit economics across these programs as Mach scales its operations.