In a major step toward strengthening its artificial intelligence capabilities, European drone manufacturer Destinus has announced plans to acquire Swiss aviation AI company Daedalean for 180 million Swiss francs ($223 million) in a mix of cash and stock.

The acquisition, set to close by the end of 2025, will integrate Daedalean’s advanced autopilot and navigation systems into Destinus’s portfolio, enhancing the company’s ability to develop next-generation strike drones and hypersonic aircraft.

Boosting AI for Military and Civil Aviation

Daedalean’s technology uses machine learning and computer vision to allow aircraft to navigate, detect obstacles, and map terrain without relying on satellites or GPS. This capability is increasingly important in modern warfare, especially as Russia’s electronic warfare tactics threaten to disrupt satellite-based systems.

“This will help our weapons systems steer and operate in contested environments where GPS is unavailable,” said Destinus founder and CEO Mikhail Kokorich. “We’ve worked closely with Daedalean before, and joining forces was the logical next step.”

A Strategic Acquisition Amid Europe’s Defense Tech Boom

Founded in 2021, Destinus is one of Europe’s fastest-growing defense tech startups, supplying drones to Ukraine and developing hypersonic aircraft for military and commercial use. The company has raised over €200 million to date and is reportedly in talks with investors that could value it at up to €1.5 billion.

The deal comes amid a surge in European defense investments following increased NATO commitments. Drones and autonomous systems have been a focal point, with companies like Helsing and Quantum Systems also securing major funding rounds this year.

Daedalean’s Journey

Founded in 2016 and headquartered in Zurich, Daedalean initially focused on autonomous systems for electric vertical take-off and landing (eVTOL) aircraft, targeting the urban air mobility market. However, with slow adoption in that sector, the company pivoted toward defense applications, conducting test flights with Italian defense contractor Leonardo SpA in 2024.

Daedalean has raised $100 million so far from investors including Honeywell International’s venture capital arm.

Looking Ahead

With this acquisition, Destinus aims to integrate Daedalean’s AI systems across both military and civilian platforms, offering advanced autonomy in environments where traditional navigation systems fail.

“This is about the future of aviation,” Kokorich said. “From contested battlefields to commercial air travel, AI-powered autonomy is the next frontier.”