Core Insights - XTI Aerospace, Inc. has acquired Drone Nerds, LLC, a leading U.S. drone distributor, for approximately $40 million, enhancing XTI's position in the unmanned aircraft systems (UAS) market [1][3][4] - The acquisition is expected to significantly expand XTI's scale, recurring revenue base, and operational footprint, aligning with its strategy to build a comprehensive portfolio of vertical flight and UAS capabilities [4][6] - Following the acquisition, XTI closed a $25 million private placement investment from Unusual Machines, which will support the integration and growth of Drone Nerds within XTI [2][4] Acquisition Details - Drone Nerds reported over $100 million in annual revenue for 2024 and more than $55 million in revenue for the first half of 2025, with a decade-long record of profitability [1][3] - The acquisition consideration includes $20 million in cash, $11.9 million in promissory notes, and $9.7 million in equity consideration, which can be converted into common shares of XTI [5] - No common stock has been issued to Drone Nerds or Unusual Machines at the time of the acquisition [3][5] Strategic Implications - The acquisition positions Drone Nerds to play a pivotal role in the evolving U.S. drone landscape, especially as the country increases restrictions on Chinese drone companies [4][6] - XTI aims to leverage Drone Nerds' technical expertise and industry reach to enhance its offerings in autonomous flight and drone-as-a-service solutions [4][6] - The partnership is expected to drive cost efficiencies and competitive advantages across various sectors, including logistics, emergency response, and agriculture [6]