AeroVironment, Inc. announced it has entered into a strategic relationship with Sweden-based CybAero AB to develop and distribute a Tier-II vertical takeoff and landing (VTOL) unmanned aircraft system in response to unmet requirements from multiple customers.

The relationship gives AeroVironment exclusive rights to provide CybAero AB systems to United States customers and to government customers in NATO and other countries. AeroVironment has agreed to purchase up to $3 million in convertible notes from CybAero to facilitate the company’s growth.

Tier-II UAS include heavier, larger and longer endurance systems with longer range, such as CybAero’s VTOL offering. Tier-III and Tier-IV include air vehicles of increasing size, capable of even longer endurance and range and requiring larger support teams and infrastructure requirements.