archTIS’s ARR Nears A$19M After Spirion Acquisition and Capital Raise

Strategic Acquisition Expands U.S. Presence

archTIS Limited has marked a pivotal moment in its growth trajectory with the acquisition of U.S.-based Spirion LLC, a leader in sensitive data discovery and remediation. Completed on 1 October 2025, this A$15.75 million deal adds approximately A$19 million in annual recurring revenue (ARR) to archTIS’s portfolio, nearly quintupling its ARR compared to the prior corresponding period. The acquisition brings a diversified customer base of over 150 blue-chip enterprises and government clients, along with a team of seasoned U.S. data security specialists.

This move significantly deepens archTIS’s footprint in the U.S. market, particularly within the defense and enterprise sectors, where demand for zero-trust and data-centric security solutions is intensifying. By integrating Spirion’s capabilities with its own secure data access and collaboration technologies, archTIS aims to offer a unified platform that addresses discovery, classification, and policy enforcement.

Capital Raise Fuels Expansion and Innovation

To finance the acquisition and underpin its U.S. growth strategy, archTIS successfully completed a A$20.5 million equity raise, comprising a A$3.5 million institutional placement and a fully underwritten A$17 million entitlement offer. This capital injection has bolstered the company’s balance sheet, leaving it with A$13.8 million in available funds at quarter-end, providing a solid runway for scaling operations, product innovation, and strategic partnerships.

Notably, archTIS is transitioning towards a higher-margin business model, with licensing revenue now representing 78% of total revenue and delivering a robust 75% gross margin. This shift away from lower-margin services and third-party software underscores the company’s focus on proprietary, scalable solutions.

Strengthening U.S. Defense Credentials

Post-quarter, archTIS secured an additional contract valued at A$250,000 with the U.S. Department of Defense through Copper River Technologies. This engagement involves enhancing the NC Protect platform for deployment within the U.S. Microsoft DoD365 environment, reinforcing archTIS’s growing presence in critical national security markets.

The company has also bolstered its U.S. leadership with the appointments of Erik Hanson and Darroll Walsh, veterans of Microsoft’s North American Defense and Intelligence team. Their expertise in defense, cybersecurity, and cloud modernization is expected to accelerate archTIS’s pipeline development and deepen government relationships.

Navigating Market Challenges Amid Government Shutdown

While the underlying market demand remains strong, archTIS acknowledges that the recent U.S. government shutdown has temporarily slowed procurement activities, delaying contract awards and modifications. This introduces some near-term uncertainty in deal flow, particularly within the Department of Defense and its industrial base. However, the company’s strengthened financial position and diversified customer base provide resilience as government operations normalize.

Looking ahead, archTIS is focused on integrating Spirion’s assets and teams to unlock cross-selling opportunities and cost synergies, while advancing its zero-trust data security portfolio to meet evolving enterprise and defense needs.