German drone manufacturer Quantum Systems is exploring the possibility of merging with kamikaze drone start-up Stark following a recent $1.2 billion funding round that restructured its shareholder base to accommodate investment in lethal military technologies. This development marks a significant strategic shift for Quantum, which until recently focused primarily on surveillance drones.
Florian Seibel, co-founder and co-CEO of Quantum Systems, explained that the funding round, which values the defence technology company at approximately $8 billion, enabled the firm to part ways with investors reluctant to support armed drone capabilities. “Anyone who did not feel comfortable with the potentially new alignment of the company had a chance here to exit,” Seibel said, signaling the company’s readiness to expand into offensive weaponry, including deep-strike missile systems.
Seibel also co-founded Stark, a start-up specializing in drones equipped with warheads designed to detonate on impact. Established in 2024 as a separate entity, Stark was created to develop lethal drone technology without contradicting Quantum’s earlier restrictions. Seibel indicated that reuniting the two companies could yield operational and developmental advantages, describing the potential merger as a way to "bring his two babies back together." However, he emphasized that no concrete merger plan exists at this stage, noting the need for careful market analysis and evaluation of acquisition costs. Stark was recently valued at €3.2 billion following its own funding round.
While Seibel acknowledged the personal appeal of combining the ventures, he stressed that Quantum’s strategic decisions will be driven by business considerations rather than sentiment. He also mentioned the possibility of acquiring other companies as part of Quantum’s growth strategy, leveraging the capital secured from investors including Blackstone, Airbus, Advent, and Noteus.
A spokesperson for Stark confirmed that there are currently no official plans for a merger between the two companies.
Quantum Systems, founded in 2015 with a focus on drones for agriculture and reconnaissance, shifted its focus toward military applications following Russia’s invasion of Ukraine in 2022. Prior to the latest funding round, the company was limited to non-armed drone technology due to shareholder opposition to weaponization.
With the recent capital infusion and strategic pivot, Quantum aims to become one of Europe’s leading defence technology firms and is reportedly considering a public listing in the coming years. The company expects to generate revenues exceeding €700 million in 2024 and aims to surpass €1 billion by 2027. Seibel characterized Quantum as “the real deal,” emphasizing its commitment to profitability and long-term presence in the defence sector.