Archer and Anduril to Develop Hybrid VTOL Military Aircraft; Raises $430M

Our Bureau - : Dec 14, 2024 - : 3:50 am

Anduril and Archer have announced an exclusive partnership to jointly develop a hybrid VTOL aircraft for critical defence applications. The two companies are targeting a potential program of record from the DOD. With Archer’s ability to rapidly develop advanced VTOL...

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With Archer’s ability to rapidly develop advanced VTOL aircraft using existing commercial parts and supply chains and Anduril's deep expertise in artificial intelligence, missionization, and systems integration, the partnership will accelerate speed to market for critical hybrid VTOL capabilities at a fraction of the cost of more traditional alternatives.

Archer’s efforts on this project will be part of its new Archer Defense program. To support the initiative and for other general corporate purposes, Archer raised $430M in additional equity capital, with participation from Stellantis, United Airlines, and new institutional investors, including Wellington Management and Abu Dhabi investment holding company 2PointZero.

Archer ended Q3’24 with $502M of cash and cash equivalents on its balance sheet. This raise brings Archer’s total capital raised to nearly $2B to date. Following the capital raise, and together with its other financing arrangements, Archer believes it is now well-positioned with one of the sector's leading balance sheets with no near-term financing needs.

"Rapid innovation and scalable production are critical for maintaining technological superiority," said Shane Arnott, SVP of Engineering at Anduril. "Anduril and Archer share a common vision for advancing capabilities that meet urgent national security needs, and we look forward to partnering with Archer to bring advanced vertical lift aircraft to our customers."

“The Archer team has deep expertise in the rapid design, engineering, and production of next-generation vertical-lift aircraft," said Adam Goldstein, founder and CEO of Archer. "With Anduril by our side, and this new influx of capital, we will accelerate the development and deployment of advanced aerospace technologies at scale.”

Archer Defense will be led by its Head of Advanced Projects, Joseph Pantalone. Pantalone recently joined Archer and is a seasoned leader in military aviation with nearly 30 years of experience at Lockheed Martin and Sikorsky.