Archer and Anduril announced an exclusive partnership to jointly create a hybrid VTOL aircraft for critical defense applications targeting a potential program of record from the DOD. For supporting this initiative and other general corporate purposes, Archer raised $430 million in additional equity capital, with participation from Stellantis, United Airlines, and new institutional investors, including Wellington Management and Abu Dhabi investment holding company 2PointZero, a subsidiary of UAE’s largest listed entity IHC.
Through Archer’s ability to rapidly develop advanced VTOL aircraft using existing commercial parts and supply chains and Anduril’s deep expertise in AI, 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 ended Q3 of 2024 with $502 million of cash and cash equivalents on its balance sheet, bringing its total capital to nearly $2 billion to date. Following this capital raise and other announced financing arrangements, Archer believes it is ready with one of the sector’s leading balance sheets and no near-term financing needs.
Archer Defense will be headed 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. And he will draw from the continued support of Archer’s world-class Defense Advisory Board, which was formed in May of 2023 and comprises highly decorated and distinguished retired military leaders.
Moelis & Company acted as the exclusive placement agent to Archer on this transaction.
KEY QUOTES:
“Rapid innovation and scalable production are critical for maintaining technological superiority. 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.”
- Shane Arnott, SVP of Engineering at Anduril
“The Archer team has deep expertise in the rapid design, engineering, and production of next-generation vertical-lift aircraft. With Anduril by our side, and this new influx of capital, we will accelerate the development and deployment of advanced aerospace technologies at scale.”
- Adam Goldstein, founder and CEO of Archer
