Nov 5 (Reuters) - TASER maker Axon Enterprise said on Thursday it would invest an additional $1.2 billion in drone maker Skydio and become its exclusive distributor in the US and Canada.
The deal highlights growing demand for drones among police, emergency response and government agencies.
Here are some more details:
• Shares of Axon slumped about 14% to $329 in extended trading after it lowered its annual revenue growth forecast and missed analyst estimates for third-quarter profit
• The investment
will increase Axon's stake in Skydio to about 37%, valuing the drone company at $5.2 billion pre-money
• Skydio develops AI-powered autonomous drones used by public safety agencies and military customers across the US
• It said priority response times at agencies using Axon's Drone as First Responder (DFR) program have been reduced by as much as 65%, with drones arriving before officers on about 80% of deployed calls
• The deal consists of a mix of cash and Axon stock, with the transactions expected to close in the fourth quarter of 2026 and first quarter of 2027
• Additionally, Axon posted an adjusted profit per share of $1.72, missing Wall Street expectations of $1.88 apiece, according to data compiled by LSEG
• The company trimmed its full-year 2026 revenue growth forecast to about 30%, citing "exclusion of three Federal Dedrone deployments totaling about $130 million"
(Reporting by Anshuman Tripathy in Bengaluru; Editing by Leroy Leo)
