archTIS secures $7.5M to accelerate growth in US defence market

Information security provider archTIS has raised A$7.5 million through the issue of 50 million new shares at $0.15 each to fund the company’s United States (US) expansion, aimed at driving future growth.

The capital will be used to deepen strategic partnerships and accelerate product development to meet the growing demand for secure data-sharing platforms, particularly within US defence and other highly regulated sectors.

According to a statement to the Australian Securities Exchange, archTIS will allocate $3 million of the funds to support its U.S. expansion efforts.

This includes building post-sales systems like onboarding automation and customer health analytics, as well as improving the onboarding and technical support infrastructure to enhance post-sales processes.

To strengthen and grow strategic partnerships, the company will invest $1.5 million to develop partnership management systems, hire new staff, and fund co-marketing and sales enablement activities.

Additionally, archTIS plans to spend $3 million on product development to advance enterprise-focused features and improve usability.

This will involve accelerating research and development in data analytics, AI insights, and automation, as well as enhancing security and ensuring compliance with regulatory standards in highly regulated industries such as defence.

archTIS CEO Daniel Lai said importantly, this capital raise is aimed at driving sustained revenue growth by strengthening our go-to-market capabilities.

“It will allow us to expand our delivery capacity, enhance our onboarding and support infrastructure, and provide new distribution opportunities in international markets,” he said. “By implementing scalable models with next-gen technology, we are positioning archTIS to capitalise on the growing demand for secure data-centric sharing platforms. 

“We are deeply grateful to our investors for their continued support and confidence in archTIS as we pursue our vision to be a global leader in data-centric security.”

The Placement was jointly led by Henslow Pty Ltd and Canaccord Genuity (Australia) Limited.

 The placement received strong backing from institutional investors and company executives. It will be completed using the company’s available capacity under Australian Securities Exchange listing rules, with settlement expected on 7 July. 

This announcement follows archTIS’ acquisition of the assets, employees and customers of Direktiv in a deal worth a total of US$750,000 in cash, in March.