Archer, Anduril to develop hybrid VTOL military aircraft

Anduril Industries and Archer have an exclusive partnership to jointly develop a hybrid propulsion vertical-take-off-and landing (VTOL) aircraft for critical defense applications targeting a potential program of record from the U.S. Department of Defense (DOD).

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 what is believed to be 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 this initiative and for 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. Archer ended Q3 2024 with $502 million of cash and cash equivalents on its balance sheet and this raise brings Archer’s total capital raised to nearly $2 billion to date. Following this capital raise, and together with Archer's other announced 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."

Adam Goldstein, founder and CEO of Archer, said, “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.”

Archer Defense will be led by its head of advanced projects, Joseph Pantalone, who recently joined Archer as a seasoned leader in military aviation with nearly 30 years of experience at Lockheed Martin and Sikorsky. He will draw from the continued support of Archer’s Defense Advisory Board, formed in May 2023, and made up of highly decorated and distinguished retired military leaders.

Moelis & Company LLC acted as exclusive placement agent to Archer on this transaction.