XTI Aerospace, Inc. has completed the acquisition of Drone Nerds, one of the largest U.S.-based drone distributors, in a $40 million transaction. The vertical flight technology company simultaneously secured a $25 million strategic investment from Unusual Machines to accelerate growth in unmanned aircraft systems and the Vertical Economy™. The acquisition brings significant hardware, software, and enterprise drone services capabilities to XTI Aerospace through a combination of cash, promissory notes, and equity consideration.
Drone Nerds generated more than $100 million in revenue during 2024, establishing itself as a major player in the domestic drone distribution market. The strategic importance of this transaction is amplified by increasing demand for U.S.-based unmanned aircraft solutions following the June 2025 White House Executive Order on domestic drone development. Unusual Machines' $25 million preferred stock investment awaits shareholder approval for conversion, representing a significant vote of confidence in XTI Aerospace's strategic direction.
Leadership from all three companies emphasized the synergistic opportunities created by combining XTI's vertical flight expertise with Drone Nerds' distribution network and Unusual Machines' strategic support. The transactions position XTI to better serve the growing market for advanced aerial solutions across commercial and government sectors. XTI Aerospace noted that ThinkEquity served as exclusive M&A advisor and placement agent for both transactions, facilitating the complex financial arrangements.
The company's existing portfolio includes the TriFan 600 VTOL aircraft, which combines helicopter-like vertical takeoff capabilities with the speed and range of fixed-wing aircraft, along with real-time location systems through its Inpixon business unit. For additional information about the company's technology and services, visit https://xtiaerospace.com/. The broader defense and aerospace industry continues to evolve rapidly, with specialized communications platforms like DefenseWireNews providing coverage of companies operating at the intersection of public markets and government demand. More details about industry developments and coverage can be found at https://www.DefenseWireNews.com.
The convergence of these strategic moves reflects the increasing importance of domestic capabilities in unmanned systems and vertical flight technologies for both economic and national security considerations. This consolidation within the drone industry comes at a critical time as government policies increasingly prioritize domestic manufacturing and development of advanced aerial technologies. The combination of XTI's technical expertise with Drone Nerds' established distribution network creates a formidable competitor in the rapidly expanding unmanned systems market.
