SAN JUAN - Unusual Machines, Inc. (NYSE American: UMAC), a manufacturer and seller of drone components, announced the completion of its acquisitions of Fat Shark Holdings, Ltd., and Rotor Riot LLC, aiming to strengthen its position in the first-person-view (FPV) drone market. The transactions are part of the company's strategy to become a leading Tier-1 supplier to the US drone industry, which is experiencing significant growth.
The integration of Fat Shark, known for its ultra-low latency FPV goggles, and Rotor Riot, an e-commerce platform catering to drone enthusiasts, is expected to enhance Unusual Machines' product offerings and customer engagement. The combined historical revenues of the acquired companies showed a 26.1% increase year-over-year, totaling $5.8 million for the 12 months ending April 30, 2023.
CEO Allan Evans expressed confidence in the acquisitions, stating they mark the start of a journey towards domestic industry leadership. Unusual Machines is committed to investing in new products and intellectual property and is actively exploring further acquisitions to complement its current offerings.
The global drone accessories market, valued at $17.5 billion, is projected by Fact.MR to reach over $115 billion by 2032. With these acquisitions, Unusual Machines seeks to capture a larger share of this market by providing a domestic alternative to international drone companies.
The information for this article is based on a press release statement from Unusual Machines, Inc.
InvestingPro Insights
In the wake of Unusual Machines, Inc.'s recent acquisitions, the company's financial health and market performance offer valuable insights. According to InvestingPro data, Unusual Machines holds a P/E Ratio (Adjusted) of -1.28 for the last twelve months as of Q4 2023, suggesting the market may have concerns about its profitability. However, the company's Gross Profit Margin stands at an impressive 100% for the same period, indicating that it has been able to maintain a cost-effective control over its production despite its challenges.
InvestingPro Tips point out that Unusual Machines is trading at a low P/E ratio relative to near-term earnings growth, which could signal a buying opportunity for investors who believe in the company's future prospects. Additionally, the company has been profitable over the last twelve months, which may reassure stakeholders of its financial viability amidst its expansion efforts.
Investors looking to delve deeper into the company's performance metrics and future potential can find additional InvestingPro Tips on InvestingPro's dedicated page for Unusual Machines at https://www.investing.com/pro/UMAC. With a total of 9 tips available, users can leverage this intelligence to make more informed decisions. For those interested in the full suite of insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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