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Hadrian Automation Inc., a startup that operates autonomous factories for the defense and space industries, said today it has acquired the procurement software firm Datum Source Inc., whose platform uses artificial intelligence to connect startups with specialist manufacturing partners.
The acquisition is being tagged as a strategic move that will enable Hadrian to accommodate the unique demands of early-stage defense and space technology startups, which require swift iterations on prototype product designs. The terms of the deal were not disclosed, but Datum Source had earlier raised $5.6 million in funding at a valuation of $30 million, according to data from PitchBook.
By taking command of Datum Source’s AI platform, Hadrian will be better positioned to help startups find compatible manufacturers, improving its ability to cater to emerging companies. The acquisition will bring about 30 of Datum Source’s clients into Hadrian’s arms, alongside its team of 14 full-time staffers. In addition, Hadrian says, Datum Source’s expertise will enable it to assist startups as they navigate the tricky procurement process.
Hadrian’s autonomous factories have traditionally catered to much bigger players in the defense and space tech industries, and until now it has often had to reject smaller startups because it was unable to iterate on their product designs quickly enough.
The problem is that startups, with their novel products, often require their manufacturing partners to make just one prototype, or a very limited number of products or components. Then, they might request an entirely different design the next day. For Hadrian, catering to these kinds of clients has often been more hassle than what it’s worth, as it requires setting up an entirely new production line for each order. That goes against the entire point of having an automated factory, which is designed to churn out dozens of products in the fastest possible time.
By acquiring Datum Source, Hadrian no longer needs to turn these clients away, and can instead help them find a suitable manufacturer that specializes in their very specific requests. Datum Source is all about helping founders save time – without it, they would need to search manually for potential suppliers.
Hadrian’s end goal is to establish good relations with defense and space tech startups, so that if those companies ever grow big enough and win a juicy Department of Defense contract and need to scale up their manufacturing, it will be in a prime position to take care of their needs.
Hadrian founder and Chief Executive Chris Power said it has long been an ambition of his to serve startups from the moment they’re ready to manufacture their first prototype.
“This acquisition gives Hadrian the immediate ability to give supply chain and engineers superpowers, enabling us to expand our customer base and better serve them through the product lifecycle from idea to scaled production,” Power explained. “The Department of Defense needs more companies to bridge the ‘valley of death’ between prototype and production, and this acquisition enables us to massively accelerate customers through that lifecycle.”
In an interview with TechCrunch, Power said the acquisition is likely to be the “first of many” for Hadrian. In future, it will be looking at acquiring other startups that operate in the automated manufacturing industry, and perhaps even some that use legacy manufacturing systems.
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