Axon to Invest $1.2 Billion in Skydio, Expanding Public Safety Drone Partnership
Axon's stake is expected to rise to about 37%, with exclusive public safety distribution rights in the U.S. and Canada. An initial purchase has closed; the remaining transactions are pending.
Axon announced an additional investment of about $1.2 billion in drone maker Skydio, expanding a partnership focused on drones used by police and other public safety agencies.
The investment is expected to increase Axon's fully diluted stake from about 15% to about 37%, according to a securities filing. Skydio is valued at $5.2 billion before the new investment. Axon will also become Skydio's exclusive public safety distributor in the United States and Canada.
This is a minority investment, not an acquisition of Skydio. The planned consideration is a mix of cash and Axon shares, with part going directly to Skydio and part buying shares from existing investors.
An initial purchase of about $254.9 million in Skydio preferred stock closed on November 5, Axon said in its SEC filing. The remaining transactions are expected to close in the fourth quarter of 2026 and first quarter of 2027, subject to closing conditions. The full $1.2 billion investment is not yet complete.
The companies are expanding their Drone as First Responder program, which allows public safety agencies to send drones to incidents to assess conditions before officers arrive. Axon says Skydio serves more than 1,500 public safety customers.
Axon says the new capital will support Skydio's product development and expansion. The agreement keeps Skydio operating as a separate company while giving Axon a larger stake and exclusive distribution rights in the two countries' public safety market.