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SCOTTSDALE - Axon (NASDAQ:AXON), the $61 billion market cap technology leader with impressive gross margins of 60.58%, announced Tuesday it has entered into a definitive agreement to acquire Prepared, an AI-powered emergency communications platform that enhances 911 response capabilities.
Prepared’s technology consolidates call audio, text, video, GPS and real-time translation into a single interface. The platform currently supports more than 1,000 agencies across 49 states, serving communities that protect nearly 100 million people.
The acquisition aims to strengthen Axon’s public safety ecosystem by connecting emergency response processes "from call to closure," potentially enabling faster response times with greater contextual information.
"AI is reshaping public safety at an unprecedented pace," said Rick Smith, Axon Founder and CEO, in the press release statement. "With Prepared, we’re harnessing that power to eliminate blind spots in the earliest moments of an emergency."
Michael Chime, Prepared CEO, stated, "Together, with Axon, we can bring our platform to more communities, build new tools faster, and better support every phase of emergency response."
Founded in 2019, Prepared has developed what it describes as an end-to-end assistive AI toolbox that consolidates critical functionality onto a single screen for public safety answering points (PSAPs). Axon’s strong financial position, with more cash than debt and a healthy current ratio of 2.95, positions it well for this strategic acquisition. According to InvestingPro, the company has demonstrated robust revenue growth of 32.41% over the last twelve months.
The transaction is subject to customary closing conditions and is expected to close in early Q4 2025. Financial terms of the acquisition were not disclosed in the announcement.
Axon was advised by Morgan, Lewis & Bockius LLP on the transaction, while Prepared was advised by Latham & Watkins LLP.
In other recent news, Axon Enterprise has been the focus of several significant developments. The company reported a robust quarterly performance with a 33% revenue growth, surpassing Wall Street’s expectations of 27% growth. This strong financial showing led TD Cowen to raise its price target for Axon to $925, while maintaining a Buy rating. Similarly, BofA Securities increased its price target to $1,000, citing strengthening momentum across Axon’s business segments. Craig-Hallum also upgraded Axon from Hold to Buy, highlighting impressive Q2 results and reaccelerated bookings and Annual Recurring Revenue growth. In terms of corporate governance, Axon appointed Todd Morgenfeld to its board of directors, expanding the board from ten to eleven members. Morgenfeld will serve on the Audit Committee and the Mergers and Acquisitions and Capital Structure Committee. His compensation includes restricted stock units and annual cash retainers. Additionally, TD Cowen reiterated its Buy rating on Axon, expressing confidence in the company’s growth drivers, including AI initiatives and international expansion.
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