XTI Aerospace Acquires Drone Nerds in $40M Deal, Secures $25M Investment from Unusual Machines
TL;DR
XTI Aerospace gains market advantage by acquiring Drone Nerds and securing $25M investment to dominate the growing domestic UAS market following White House executive orders.
XTI Aerospace acquired Drone Nerds through a $40M transaction involving cash, notes, and equity while securing $25M strategic investment from Unusual Machines to accelerate UAS growth.
This acquisition strengthens domestic drone capabilities, supporting national security and creating advanced aviation solutions that benefit transportation and emergency response systems nationwide.
XTI Aerospace merges vertical flight innovation with drone distribution expertise, creating a powerful combination that could reshape how people and goods move through airspace.
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XTI Aerospace, Inc. (NASDAQ: XTIA) has completed the acquisition of Drone Nerds, one of the largest U.S.-based drone distributors, in a $40 million transaction finalized November 10, 2025. The vertical flight technology company simultaneously secured a $25 million strategic investment from Unusual Machines (NYSE American: UMAC) to accelerate growth in unmanned aircraft systems and what the company calls the Vertical Economy.
The acquisition brings significant scale to XTI Aerospace's operations, with Drone Nerds generating more than $100 million in revenue during 2024. The transaction was structured through a combination of cash, promissory notes, and equity consideration, providing Drone Nerds with hardware, software, and enterprise drone service capabilities that complement XTI's existing vertical flight technologies. The strategic investment from Unusual Machines involves preferred stock that awaits shareholder approval for conversion, indicating long-term commitment to the partnership.
This consolidation comes at a critical time for the domestic drone industry, with leadership from all three companies emphasizing the opportunity created by increasing demand for U.S.-based unmanned aircraft solutions. The timing aligns with the June 2025 White House Executive Order on U.S. drone development, which has stimulated renewed interest and investment in domestic capabilities. The executive order represents a significant policy shift that could reshape the competitive landscape for unmanned systems in both commercial and defense applications.
The transaction positions XTI Aerospace to leverage Drone Nerds' extensive distribution network and customer relationships across multiple sectors. For more information about XTI Aerospace's broader initiatives, visit https://xtiaerospace.com/. The full details of the acquisition and investment are available in the official press release at https://ibn.fm/He7w9.
ThinkEquity served as exclusive M&A advisor and placement agent for both transactions, highlighting the strategic importance and complexity of the deals. The combination of XTI's vertical takeoff technology with Drone Nerds' distribution capabilities creates a vertically integrated company positioned to capture market share across multiple segments of the growing unmanned systems industry. This move reflects broader industry trends toward consolidation as companies seek to offer comprehensive solutions rather than individual products or services.
The investment from Unusual Machines provides additional capital to accelerate development and expansion initiatives, particularly in the rapidly evolving Vertical Economy sector. This emerging market encompasses not only traditional drone applications but also advanced air mobility, urban air transportation, and specialized vertical flight solutions for both commercial and government customers. The partnership between these companies could potentially create new standards and benchmarks for performance, safety, and operational efficiency in the unmanned systems space.
Curated from InvestorBrandNetwork (IBN)
