Unusual Machines to Acquire Upgrade Energy for $52M

Orlando, Florida, USA Unusual Machines, Inc. (NYSE American: UMAC), a manufacturer specializing in NDAA-compliant drone components, has announced a definitive agreement to acquire DroneNX LLC, which operates under the name Upgrade Energy. The transaction, valued at approximately $52 million, will be settled through a mix of cash and stock, incorporating a performance-based earnout structure.

Acquisition Details

• Strategic Value: The deal integrates Upgrade Energy's specialized battery and power systems technology into Unusual Machines' portfolio, enhancing its engineering and domestic manufacturing capabilities.
• Operations: Upgrade Energy currently operates out of an 18,500-square-foot facility in Torrance, CA, with a team of 30 employees. Unusual Machines intends to scale production by establishing a second facility in Orlando, FL.
• Closing Conditions: The acquisition remains subject to customary closing conditions, including an audit of Upgrade Energy for the year 2025.

By bringing Upgrade Energy under its umbrella, Unusual Machines aims to address critical challenges in drone flight time and reliability while bolstering its position as a key Tier-1 supplier within the U.S. drone industry.