Five on Friday: Destinus, Joby and Archer
If you want something done that you aren’t able to do already, do you buy it in or do you employ the people that make it?
The discussion about how vertically a company should integrate is centuries old. There are early examples of success such as Rockefeller Standard Oil and Carnegie Steel from the 19th century and earlier.
Destinus buying Daedalean
This week drone developer Destinus announced its acquisition of fellow Swiss AI-powered avionics specialist Daedalean. The deal worth a potential $225m is expected to close by year-end.
Having first planned to develop a hydrogen-powered hypersonic aircraft, since flying a tech demonstrator in 2023, Destinus has shifted its focus to uncrewed systems for the defence market.
The two companies have worked together before on projects such as navigation in GNSS-denied environments and airborne and ground object recognition.
“Now, as one company, we are in a position not only to continue and expand those initial efforts, but also to launch new joint projects focused on other aspects of AI-enabled autonomy for unmanned aerial systems,” a spokesperson for Destinus told us.
Founded in 2016, Daedalean has raised about $70m. Although its new owner believes that Daedalean’s value and technical depth “far surpass the modest amount of capital it has raised”.
Joby to acquire Blade’s passenger business
Earlier in the week, Joby announced has agreed to acquire Blade Air Mobility’s passenger transportation business. The deal includes all of Blade’s passenger business, including operations in the US and Europe, as well as the Blade brand.
A spokesperson for Joby told us the acquisition gives the company a “significant headstart”, helping to reduce both infrastructure investment and customer acquisition costs.
The Californian eVTOL developer’s long-term vision is to electrify Blade routes with their aircraft, beginning as soon as FAA certification is complete. “We’ll be working in the interim with the Blade team to further define how we will execute this transition,” added Joby’s spokesperson.
Archer makes two acquisitions
Meanwhile, Archer Aviation, a company that has taken a mixed approach to vertical integration, made two acquisitions this week, including a patent portfolio from Overair. It is not clear what this means for the sale of Overair’s own AAM programme, or indeed if this it. The firm has part-developed a quad titlrotor eVTOL it calls ButterFly, assembling a prototype in 2023.
Archer has also acquired a 60,000sqft (5,574sqm) composites manufacturing facility from defence company Mission Critical Composites. The eVTOL developer said the Southern California facility was purchased solely to boost its in-house composite production capability.
Vertical and Aciturri
Elsewhere, Vertical Aerospace selected Spanish aerospace components specialist Aciturri Aeronáutica to produce the entire airframe, including the wing, empennage, pylons and fuselage, for the VX4 beyond service entry.
Nick Manassei, head of Procurement and Legal at Vertical, told us: “Consolidating responsibility for the full airframe with a single supplier like Aciturri is a deliberate move to reduce program complexity and improve integration.”
The parts will be manufactured in Spain before being shipped to the UK for final assembly.
Vertical’s long-range parts purchasing strategy is a key pillar of its Flightpath 2030 roadmap, said Manassei. “By locking in supply of major components with tier one suppliers early – across both pre-production and certified aircraft – Vertical secures long-term manufacturing stability,” he added.
