Drone industry brand, Red Cat Holdings (RCAT.OTC), announced the acquisition of headset and goggle provider for professional first person view (FPV) involving racers and drone pilots, Fat Shark Holdings, earlier this week according to a press release.
Financially, Fat Shark looks like a good bet. Not only do they have an 85% estimated market share, they bring in roughly $7 million in annual revenue, which will give mean a respectable boost in revenue for the combined companies. This merger comes shortly after the company picked up Rotor Riot, another leading FPV and drone racing hardware company, in January of 2020.
“This has been a transformational year for Red Cat. As we establish our leadership position through our acquisitions, we expect to take significant market share of the drone market that analysts currently forecast will grow to $42.8 billion by 2025.” “Fat Shark acquisition adds a fully-integrated supply chain, experienced international manufacturing and sourcing capabilities, and design and development resources. Fat Shark’s new digital products provide a platform to fuel our future growth as the industry continues to evolve,” said Jeff Thompson, CEO of Red Cat.
Red Cat is busy developing a completely fully integrated drone supply chain offering secure blockchain-based distributed storage, analytics and SaaS solutions for the drone industry. Their Rotor Riot platform is present for education, training and drone product sales, and developing presently a means to accurate track, report and review in-flight data that could theoretically finding a landing with government through regulatory requirements, and also in the insurance industry.
“With the addition of Fat Shark we have paired a quality hardware base with Rotor Riot’s robust educational/entertainment brand. Fat Shark’s new line of digital headsets with their ‘out of the box’ functionality meshes perfectly with our popular ‘Ready To Fly’ (RTF) packages,” said Chad Kapper, CEO of Rotor Riot.
This year the drone market pulled in USD$22.5 billion, and the market is anticipated to grow at a compound annual growth rate of 13.8% to almost double these numbers by 2025, with the numbers projected to be around $42.8 billion, according to projections from Drone Industry Insights.
Here’s a Youtube clip with more information.
—Joseph Morton