Future warfare will likely be much more advanced—let’s say even more high-tech than we can imagine now. Start-ups focused on defense technologies are at the forefront of this trend.
Anduril
is amassing the technology required to meet the needs of a modern military.
On Monday, Anduril announced the acquisition of
Klas
, an engineering company that focuses on “edge computing” and strategic communication.
Klas has some 150 employees around the world. Financial terms weren’t disclosed, and the deal should close in the coming few weeks.
Edge computing refers to processing data at the edge of a network versus at a central hub or data center. The edge for an army can be literally on the front lines of a battlefield. As for tactical communications, think walkie-talkies.
Of course, the Army has progressed far beyond
walkie-talkies
. Take the Army’s Integrated Visual Augmentation System or IVAS. It aims to provide soldiers with all-weather fighting goggles, including heads-up displays integrating battle details. That kind of technology needs to be rugged and connected.
Anduril
works
with Microsoft on the IVAS program. Klas is a subcontractor.
“Klas leads the way… They create the finest products globally for those at the tactical edge,” states Tom Keane, Senior Vice President of Anduril. He continues, “Anduril is revolutionizing the capabilities of warfighters at the tactical edge.” This partnership will bolster their company’s expertise in sectors like wearable technology, robust communication systems, and additional fields.
It’s Anduril’s ninth deal and looks like a smart one.
Most investors, however, can’t react by buying Anduril stock. The Costa Mesa, Calif.-based
company
The company is privately owned with an estimated value exceeding $30 billion. Its objective is to establish itself as a leading defense supplier, developing weaponry systems through rapid adoption and large-scale implementation of cutting-edge commercial technologies.
Investors have the opportunity to monitor this agreement, gaining insights into how technological advancements are shaping the future of the defense industry. This development also offers valuable information regarding the competitive landscape faced by companies such as Lockheed Martin, Northrop Grumman, L3Harris Technologies, among others.
Anduril may be under ten years old, yet it progresses rapidly, securing over $4 billion in contracts. At the heart of Anduril’s technology lies an AI system known as Lattice, which plays a key role in various applications including their drone surveillance systems.
Sentry tower
to its
Ghost
reconnaissance drone and its autonomous unmanned aircraft Fury, which can collaborate with manned fighter jets. Lattice can be applied to Klas products, such as its tactical network product
Voyager
.
Integrating Voyager and Klas technologies enables Anduril to develop a wider range of products with enhanced capabilities at an accelerated pace, according to Keane. This essentially comes down to that point.
At the start of Monday’s trading session, the iShares U.S. Aerospace & Defense ETF had gained approximately 11% for the year, outperforming the S&P 500 by roughly 14 percentage points.
The segment of the ETF focused on aerospace has shown more stability compared to its defense counterpart. The stocks of Lockheed Martin, Northrop Grumman, L3Harris, and General Dynamics have collectively risen by approximately 3%.
Send the letter to Al Root at
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