Three-year-old Mach Industries has acquired solid rocket motor startup Exquadrum in a $50 million cash-and-equity deal, according to the Huntington Beach-based defense startup. Exquadrum, now rebranded as Mach Energetics, has been integrated into Mach’s operations, granting it direct control over a crucial component in modern unmanned systems.
The acquisition began with a coincidence when a Mach recruiter discussed the company’s need for a solid rocket motor supplier at an MIT event, leading to introductions and Mach initially becoming a customer before acquiring Exquadrum, surpassing over eight other potential buyers.
“This acquisition marks the next stage in Mach’s growth,” said founder and CEO Ethan Thornton, who started the company after leaving MIT at 19. “As we deliver vehicles to the warfighter, we’ll integrate our supply chain across motors, engines, radar, and avionics to ensure optimal products at low costs.” He emphasized the necessity of vertical integration due to supply issues in defense components.
The domestic solid rocket motor market is largely dominated by Aerojet Rocketdyne and Northrop Grumman, with limited capacity to meet the increasing demand from modern drone warfare. In February, the Pentagon awarded Anduril $43.7 million to expand SRM production, highlighting SRMs as a critical bottleneck.
Mach positions itself to aid this ecosystem, offering components, testing services, and subsystems beyond its own programs. Mach Energetics aims to serve as infrastructure for the defense tech industry rather than just a systems builder.
Mach has absorbed all 85 Exquadrum employees, its IP, business lines, and 70,000-square-foot Victorville facility, known for its energetics and rocket propulsion test site. The combined company now has about 350 employees, with Exquadrum co-founders Kevin Mahaffy and Eric Schmidt joining Mach Energetics’ leadership.
The acquisition parallels moves by other startups aiming to control the stack and leverage cost and speed. Mach has five vehicle programs in development—Viper, Glide, Stratos, Dart, and Pike—with plans for production on three this year. The deal enhances unit economics across these programs as the company begins to scale.
Mach has raised nearly $200 million, including a recent $100 million Series B led by Bedrock Capital, Khosla Ventures, and Sequoia Capital, valuing the company at $470 million. This trajectory is worth watching as Mach progresses.