Varjo, the Finland-based maker of high-end XR headsets, announced it’s secured a €5 million (~$5.8 million) minority investment from THEON, the Greece-based manufacturer of military imaging systems.
Structured as a convertible loan, the €5 million investment also includes the option to secure an additional €5 million under the same terms, the companies say in a joint press release. Additionally, as a result of the strategic partnership, Varjo and Theon have agreed to collaborate closely on multiple product and business initiatives.
Founded in 1997, Theon develops and manufactures customizable night vision, thermal imaging systems and Electro-Optical ISR systems for military and security applications in Europe.
Varjo says the investment will strengthen the company’s capabilities to deliver “military-grade realism through next-generation immersive technologies.”
“We are proud to welcome THEON as a strategic investor in Varjo,” said Timo Toikkanen, CEO of Varjo. “Since our inception, we have been creating the most advanced VR/XR military systems globally. THEON’s extensive experience and leadership in the defense sector make them an ideal partner as we expand our impact in mission-critical training and simulation, enabling unprecedented levels of realism, readiness, and operational effectiveness.”
Theon CEO Christian Hadjiminas says the investment “deepens our reach into the European innovation ecosystem and gives THEON access to unique capabilities in visual display systems and projecting technology. Together, we are pushing the frontier of digital defense technology.”
Theon’s investment in Varjo comes as part of its broader ‘THEON NEXT’ initiative, which is taking the company beyond imaging, as Theon seeks to expand into digital and AR-driven soldier systems.
Through Theon Next, the company has also invested $15 million in US/UK-based XR display manufacturer Kopin, signed a multi-year supply agreement with US-based XR display manufacturer eMagin, and announced a strategic partnership with ALEREON, the US-based creator of ultra-wide-band wireless technology.
This follows news last month that Varjo is pulling support for its older XR headsets starting next year, and putting its main focus on its XR-4 Series headsets, effectively marking a return to enterprise-first offerings following the release of its first and only consumer-focused headset, Varjo Aero.
Released in late 2023, the XR-4 Series includes the standard XR‑4 ($5,990), XR‑4 Focal Edition ($9,990), and its military-compliant XR‑4 Secure Edition, which comes in three variants (~$18,00 – $32,000).
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