XTI Aerospace Acquires Drone Nerds and 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 on November 10, 2025. The acquisition coincides with a $25 million strategic investment from Unusual Machines (NYSE American: UMAC) aimed at accelerating growth in unmanned aircraft systems and the Vertical Economy™. This dual announcement represents a significant consolidation in the domestic drone industry at a time when government policy is driving increased demand for American-made unmanned solutions.
The acquisition brings substantial operational capabilities to XTI Aerospace, as Drone Nerds generated more than $100 million in revenue during 2024. The transaction was structured using a combination of cash, promissory notes, and equity consideration, providing Drone Nerds with hardware, software, and enterprise drone services that complement XTI's existing vertical flight technology portfolio. The strategic investment from Unusual Machines involves preferred stock that awaits shareholder approval for conversion, adding substantial capital to fuel expansion in the rapidly growing unmanned systems market.
Leadership from all three companies emphasized the strategic timing of these transactions, pointing to increasing demand for domestic UAS solutions following the White House Executive Order on U.S. drone development issued in June 2025. This executive action has created new opportunities for American companies operating in the unmanned aircraft sector, making the consolidation between XTI Aerospace and Drone Nerds particularly significant for the industry's competitive landscape. The combined entity positions itself to capitalize on growing government and commercial demand for secure, domestically-produced drone technology.
XTI Aerospace noted that ThinkEquity served as exclusive M&A advisor and placement agent for both transactions, ensuring proper execution of the complex financial arrangements. The company's existing expertise in vertical flight technologies, including development of the TriFan 600 VTOL aircraft, combined with Drone Nerds' distribution network and enterprise services, creates a comprehensive offering across both manned and unmanned vertical flight markets. For more information about XTI Aerospace's technology portfolio, visit https://xtiaerospace.com/.
The broader implications of this consolidation extend beyond the immediate financial transactions. The combination of XTI's advanced aircraft development capabilities with Drone Nerds' established distribution network and Unusual Machines' strategic investment creates a formidable competitor in the emerging Vertical Economy. This sector encompasses not only traditional aviation but also the rapidly expanding market for unmanned systems across commercial, industrial, and government applications. The timing coincides with increased focus on domestic manufacturing capabilities in critical technology sectors, particularly those with national security implications.
Industry observers will be watching how this consolidation affects competition in the U.S. drone market, particularly as government policies continue to favor domestic suppliers. The acquisition of Drone Nerds provides XTI Aerospace with immediate scale and market presence, while the strategic investment from Unusual Machines ensures adequate capital to pursue aggressive growth objectives. This combination of established distribution capability with advanced technology development positions the consolidated entity to capture significant market share in both commercial and government drone sectors.
Curated from InvestorBrandNetwork (IBN)
