Unusual Machines to Acquire Upgrade Energy for $52M, Adds 18,500 Sq Ft Facility
Unusual Machines will acquire Upgrade Energy for $52 million in cash and stock, adding battery power expertise, an 18,500 sq ft Torrance, CA facility and 30 staff. The acquisition expands UMAC’s domestic production and includes plans for a second Orlando battery pack plant.
1. Acquisition Terms
Unusual Machines signed a definitive agreement to acquire DroneNX LLC (Upgrade Energy) for approximately $52 million in cash, stock, and a performance-based earnout. The deal secures domestic battery and power systems expertise to complement existing drone component operations.
2. Upgrade Energy Capabilities
Upgrade Energy operates an 18,500 square foot facility in Torrance, CA and employs around 30 engineering and production personnel. The company specializes in high-performance drone battery and power systems designed to improve flight time and reliability.
3. Production Expansion Plans
Unusual Machines plans to establish a second battery pack production facility in Orlando, FL in the coming months. This additional site aims to scale manufacturing capacity and support increased demand for NDAA-compliant drone components.
4. Strategic Impact
The acquisition adds vertical integration by bringing battery pack design and manufacturing in-house, broadening the product portfolio with new power systems components. This move positions Unusual Machines for growth in the fast-expanding U.S. drone accessories market.