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ORLANDO, FL - Unusual Machines (NYSE:UMAC), a manufacturer and seller of drone components, has entered into a definitive agreement to acquire Aloft Technologies, Inc., a leader in unmanned aerial system (UAS) services. The all-stock transaction is valued at $14.5 million and is expected to close in the coming months, subject to customary closing conditions and approvals. With a current market capitalization of $177 million and trading at $12.04 per share, UMAC has demonstrated remarkable momentum with a 561% price return over the past six months, according to InvestingPro data.
Aloft Technologies is renowned for its significant role in the drone fleet and airspace management sector, holding a commanding share of FAA-approved Low Altitude Authorization and Notification Capability (LAANC) airspace authorizations. In 2024 alone, the company processed 400,000 authorizations, contributing to their total of over 1.6 million to date. InvestingPro analysis indicates UMAC maintains a healthy liquidity position with a current ratio of 2.24, though the company’s EBITDA stands at -$4.53 million for the last twelve months.
The acquisition is strategic for Unusual Machines as it seeks to enhance its position in the U.S. drone industry, especially with the Federal Aviation Administration anticipating a surge in drone numbers to over 3 million by 2028. Aloft’s proprietary software, including their newly launched Air Boss real-time UAS air traffic management system, is expected to facilitate safer and more efficient airspace collaboration.
Allan Evans, CEO of Unusual Machines, emphasized the importance of integrating American software with hardware to secure drone data and components, particularly in light of shifting supply chains away from China. He lauded Air Boss as a solution for airspace coordination that could prevent incidents like the one in New Jersey, without elaborating on the specifics of that event.
Jonathan Hegranes, CEO and Co-Founder of Aloft, expressed that the acquisition would expedite Aloft’s mission to enable flight through advanced technology and data-driven insights, while continuing to prioritize cybersecurity and American-made software solutions.
This deal highlights Unusual Machines’ ambition to become a dominant Tier-1 parts supplier in the burgeoning multi-billion-dollar U.S. drone industry. The global drone accessories market, as reported by Fact.MR, is valued at $17.5 billion and projected to exceed $115 billion by 2032. Trading at a price-to-book ratio of 9.2, UMAC appears overvalued relative to its Fair Value estimate on InvestingPro, which offers 12+ additional financial health indicators and valuation metrics for informed investment decisions.
The information in this article is based on a press release statement. It should be noted that forward-looking statements involve risks and uncertainties, and actual results may differ from those projected. Factors that could affect the acquisition include Aloft’s ability to meet closing conditions and the successful integration of its software and employees into Unusual Machines.
In other recent news, Unusual Machines has been making significant strides in its financial operations. The company issued equity to directors Cristina Colón, Sanford Rich, Robert Lowry, and Jeffrey Thompson as part of its 2022 Equity Incentive Plan. Despite operating at a loss, with earnings per share at -$0.80, the company has successfully eliminated its $3 million indebtedness through the issuance of new shares to accredited investors. Maxim Group initiated coverage on Unusual Machines, assigning a Buy rating and setting a price target of $18.00.
In a strategic move, XTI Aerospace announced its intention to acquire a 30% equity stake in ReadyMonitor, an AI-driven autonomous Drone-as-a-Service provider. The acquisition, expected to close in Q1 2025, is part of XTI’s strategy to integrate unmanned VTOLs with their TriFan 600 aircraft technology.
Unusual Machines also finalized transactions with Red Cat Holdings, involving a working capital adjustment related to the acquisitions of Rotor Riot and Fat Shark. The parties agreed to a $2 million adjustment, increasing the existing note payable from $2 million to $4 million. These are the recent developments for both Unusual Machines and XTI Aerospace.
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