Defense startup Mach Industries has acquired rocket and hypersonic developer Exquadrum in a $50 million cash-and-equity deal, giving the young drone company access to advanced rocket propulsion technology, hypersonic weapons research, and defense contracts tied to the Trump administration’s priorities, such as Golden Dome missile defense.

The acquisition reflects the growing influence of venture-backed defense startups as US military spending increasingly focuses on drones, hypersonic missiles, and autonomous systems, reports The Wall Street Journal. Exquadrum brings more than two decades of expertise in rocket motors, hypersonic testing, and space propulsion, along with 85 employees and specialized facilities.

Mach Industries founder Ethan Thornton said the company plans to integrate Exquadrum’s technology into its autonomous aircraft programs as defense-tech investment surges under renewed Pentagon support for rapidly innovating startups.