Red Cat Holdings Inc. (RCAT:OTCMKTS) announced in a news release it agreed to acquire Rotor Riot in a stock and cash deal. The transaction is expected to close in mid-January.
Rotor Riot provides first person view (FPV), freestyle drone content and hardware to drone hobbyists and sportspeople. Between 2018 and 2019, the company's revenue increased about 44% to $2.6 million. Following the transaction, the company's CEO, Chad Kapper, will stay on in this role.
For Red Cat, the deal is "another significant milestone in our strategy to fuel rapid growth," CEO Jeff Thompson said in the release. Red Cat provides secure blockchain-based, distributed storage, analytics and software-as-a-service (SaaS) to the drone industry.
"Combining our companies will further align our SaaS platform and data capabilities with cutting edge hardware available today and provide a solid foundation for us to develop and engineer new and exciting technologies," Thompson added.
Also with the transaction, the company stated that Red Cat can develop strong customer support for Rotor Riot, using its data analytics platform. In turn, Rotor Riot can boost its efforts to take FPV drone sports to the mainstream and grow.
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