AcquisitionsMay 11, 2026, 08:02 AM
Unusual Machines to Acquire Upgrade Energy for $52M
AI Summary
Unusual Machines, Inc. has signed a definitive agreement to acquire DroneNX LLC d/b/a Upgrade Energy, a manufacturer of battery and power systems for unmanned aerial systems, for approximately $52 million. The transaction includes 1,792,012 shares of common stock, $1 million cash at closing, and a potential $26 million earn-out based on revenue targets. This acquisition is expected to strengthen Unusual Machines' domestic manufacturing and engineering capabilities by adding battery expertise and expanding its drone component portfolio.
Key Highlights
- Unusual Machines to acquire DroneNX LLC d/b/a Upgrade Energy for approximately $52 million.
- Consideration includes 1,792,012 shares of Company common stock at $13.9508 per share.
- A $1 million cash payment will be made at closing.
- A potential post-closing earn-out of up to $26 million in cash is tied to a $10 million annual revenue target over two years.
- Matthew Barnard, Upgrade Energy's CEO, will serve as Chief Executive Officer of the Surviving Company.
- The acquisition strengthens Unusual Machines' domestic engineering and manufacturing capabilities with battery and power systems expertise.
- The merger is expected to close within 120 days, subject to customary closing conditions including Upgrade's 2025 audit.
Price Impact
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