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ENGLEWOOD, Colo. - XTI Aerospace, Inc. (NASDAQ:XTIA) announced Wednesday it has acquired Drone Nerds, LLC, one of the largest drone distributors in the United States, for approximately $40 million.
The acquisition, completed on November 10, brings under XTI's umbrella a company that generated more than $100 million in revenue in 2024 and over $55 million through the first half of 2025, according to a company statement.
Following the acquisition, XTI closed a $25 million private placement investment from Unusual Machines, Inc. (NYSE American:UMAC), which manufactures and sells drone components. XTI issued 25,000 shares of Series 10 Convertible Preferred Stock at $1,000 per share, convertible to common stock at $1.492 upon shareholder approval. InvestingPro data shows UMAC has a strong balance sheet with more cash than debt and impressive revenue growth of 133% over the last twelve months, though the company currently appears overvalued according to InvestingPro's Fair Value assessment.
The purchase consideration consisted of $20 million in cash, $11.9 million in promissory notes, and $9.7 million in equity consideration that can be exchanged for XTI common shares after May 1, 2026.
"The acquisition of Drone Nerds is a foundational step as we advance our strategy to build the most comprehensive portfolio of vertical flight and UAS capabilities in the industry," said Scott Pomeroy, CEO of XTI.
Jeremy Schneiderman, CEO of Drone Nerds, noted the acquisition aligns with recent government initiatives, stating, "We are excited to support their innovative approach to advancing U.S. drone leadership consistent with the June 6, 2025, White House Executive Order on domestic drone development."
XTI Aerospace is developing the TriFan 600, a fixed-wing aircraft designed with vertical takeoff and landing capabilities. The company plans to file additional information about the transaction with the SEC in a Current Report on Form 8-K.
ThinkEquity served as the exclusive M&A advisor to XTI for the acquisition and as placement agent for the private investment.
In other recent news, Unusual Machines Inc reported its first profitable quarter for Q3 2025, achieving a net income of $1.6 million. The company also recorded a revenue of $2.1 million, which marks a 39% increase compared to the same period last year. Despite this financial achievement, the stock experienced notable volatility. The earnings report stands as a significant milestone for Unusual Machines, reflecting strong financial performance. These developments are crucial for investors monitoring the company's financial health. The recent profitability may influence future analyst recommendations and investor sentiment. Analysts and investors will likely keep a close watch on Unusual Machines' future earnings reports.
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