SLC's Palladyne AI forms new defense division through acquisitions

Palladyne AI Corp., a Salt Lake City software company specializing in artificial intelligence for robotics, has announced a major shift in its strategy with the acquisition of three companies. 

Through the acquisitions, Palladyne will launch Palladyne Defense, a new division focused on embodied AI, advanced avionics and U.S.-based production. 

Palladyne has acquired GuideTech LLC of Tucson, Arizona, and two companies formerly owned by private investment firm Crusis Cos. of Tampa, Florida: Warnke Precision Machining of Oxford, Michigan; and MKR Fabricators of Saginaw, Michigan.

Palladyne said that the acquisitions, paired with the defense variant of Palladyne Pilot — now branded as SwarmOS — are designed to support the U.S. Department of Defense’s (War’s) priorities for intelligent autonomy, faster innovation cycles and the reshoring of critical defense manufacturing.

“This marks a defining inflection point for Palladyne AI,” said Ben Wolff, president and CEO of Palladyne.” Through the creation of Palladyne Defense, we are transforming from an AI software innovator into a vertically integrated defense technology company. We are combining breakthrough autonomy with American manufacturing strength to create a defense enterprise that is fast and scalable by design.”

“Our ethically embodied AI operates at the edge, enabling machines to perceive, decide and act independently while maintaining alignment with mission objectives and human intent,” Wolff continued. “By uniting our patented AI with proven design, engineering and manufacturing capabilities, we are advancing the Department of War’s modernization priorities through intelligent, resilient, low-cost-per-effect, reshored defense systems that strengthen readiness and preserve U.S. technological sovereignty, ensuring America’s ability to build and sustain its own next-generation defense systems.”

According to the company, the new division will more than triple Palladyne AI’s 2024 revenue of $7.8 million by 2026. GuideTech’s avionics and engineering services, along with the Crucis Cos.’ precision manufacturing, are expected to provide near-term revenue growth. The combined group holds an 18-month backlog of more than $10 million in orders.

“Joining Palladyne AI allows us to accelerate commercialization and strengthen our competitive position,” said James Cook, co-founder and president of GuideTech.

The combined acquisition price of $31 million breaks down as $20 million in stock, $5 million in upfront cash and $6 million in assumed debt. GuideTech’s owners may also earn up to $25 million in contingent payments over five years once cumulative revenue from eligible products exceeds $71 million, Palladyne said.