More police agencies are sending drones from rooftop docks to emergencies ahead of patrol cars, and Axon wants to own the channel that sells them. The roughly $1.2 billion investment, paid in cash and stock according to a securities filing, will add about 20% to its fully diluted stake at a $5.2 billion pre-money valuation and make Axon the exclusive distributor to U.S. and Canadian public-safety agencies, the company said in its release.
The deal is structured in stages rather than a single check. Part of the cash goes to Skydio as growth capital and the rest buys shares from its existing investors, with closings expected in the fourth quarter of 2026 and the first quarter of 2027.
Skydio, based in San Mateo, California, is the largest U.S. drone manufacturer and sells to police, utilities and the military. It counts more than 1,500 public-safety customers, and expects about $1 billion in bookings this fiscal year, Axon told its shareholders.
Axon already runs a drone business of its own, pairing its Axon Air management software with Dedrone systems that detect and counter unwanted aircraft.