Drone technology companies have come into focus among many investors in recent times and it is easy to see why. The drone industry is expected to grow quite rapidly in the coming years and hence, many investors are now looking into a range of companies that are involved in the sector.
One of the companies that could be work looking into is the drone technology solutions provider Red Cat Holdings Inc (NASDAQ:RCAT). Yesterday, the Red Cat stock was in sharp focus among investors after the company announced that it reached an agreement with regards to the acquisition of the automated aerial vehicle technology company Teal Drones.
It could prove to be a major acquisition for the company and hence, it was no surprise that the stock rallied by as much as 605 yesterday on the back of considerable interest. The financial details of the deal were not disclosed by either party; however, it did emerge that the entire deal has been conducted in stock.
Now that Teal Drones has been added to Red Cat’s portfolio, the company is now going to have a wider range of offerings for its clients in the United States and Canada. Jeff Thompson, who is the Chief Executive Officer of Red Cat, stated that this acquisition is going to help the company in easily moving into the government and enterprise sector. Teal Drones already has deals in place with the Department of Defense and that could prove to be a major positive for Red Cat in the long run.