Finnish virtual and mixed reality specialist Varjo has secured a €5 million investment from Greek defence technology leader THEON, alongside a strategic partnership to accelerate innovation in military-grade immersive training solutions. The collaboration underscores a growing trend in defence technology: the fusion of cutting-edge commercial tech with traditional military systems to enhance operational readiness.
Varjo, known for its high-fidelity XR-4 Series and government-compliant XR-4 Secure Edition, will leverage THEON’s €5 million convertible loan to expand its capabilities in delivering hyper-realistic training environments. The investment also includes an option for an additional €5 million under the same terms, providing Varjo with financial flexibility as it scales its operations.
The partnership aligns with THEON’s broader digital expansion under its THEON NEXT initiative, which focuses on integrating high-technology innovations into defence applications. By combining Varjo’s expertise in virtual and mixed reality with THEON’s global defence experience, the two companies aim to redefine military training and simulation.
“THEON’s extensive experience and leadership in the defence sector make them an ideal partner as we expand our impact in mission-critical training and simulation,” said Timo Toikkanen, CEO of Varjo. “Together, we are pushing the frontier of digital defence technology.”
For THEON, the investment represents a strategic move to deepen its presence in the European innovation ecosystem. With over 220,000 night vision and thermal imaging systems deployed globally, THEON is well-positioned to integrate Varjo’s immersive technologies into its existing defence solutions.
“Our investment in Varjo under the THEON NEXT initiative deepens our reach into the European innovation ecosystem and gives THEON access to unique capabilities in visual display systems and projecting technology,” said Christian Hadjiminas, CEO of THEON.
The collaboration is expected to enhance training outcomes in terms of speed, effectiveness, and cost-efficiency, particularly in land, sea, and air environments. By combining Varjo’s hardware and software solutions with THEON’s defence expertise, the partnership could set new standards for military training and simulation.
This investment and partnership highlight the increasing importance of immersive technologies in modern defence strategies. As both companies push the boundaries of what’s possible in virtual and mixed reality, their collaboration could shape the future of military training and operational readiness.