Axon Invests Another $1.2 Billion in Drone Maker Skydio
US company Axon, known for body cameras and Tasers, is investing a further $1.2 billion in drone manufacturer Skydio. The deal also makes Axon the exclusive distributor of Skydio drones to public safety agencies in the US and Canada.
Axon, a US technology company known for body cameras, Tasers and law enforcement technology, has announced an additional $1.2 billion investment in American drone manufacturer Skydio. Axon will also become the exclusive distributor of Skydio drones to public safety customers in the United States and Canada, widening a partnership that already puts autonomous drones in the hands of police departments and other emergency response agencies.
The investment will increase Axon's fully diluted ownership of Skydio by roughly 20%, based on a pre-money valuation of $5.2 billion. The package consists of cash and Axon stock. Part of the money goes directly to Skydio for product development and expansion, and part is used to buy shares from existing shareholders.
Drones as first responders
The deal centers on the Drone as First Responder (DFR) market. A drone waits in a docking station and launches automatically when an emergency call arrives. It can reach the scene before ground units and give dispatchers and officers an aerial view. This helps assess threats, locate missing children and vulnerable people, and sometimes de-escalate situations.
Skydio says more than 1,500 public safety customers use its technology, and over 28 million Americans live within two miles of a Skydio DFR dock. The company reports that agencies using its DFR systems have cut priority response times by as much as 65%, and that in about 80% of calls where the technology is deployed, drones arrive before officers.
Axon estimates the addressable DFR market in the US and Canada alone at about $13 billion. Skydio expects roughly $1 billion in total bookings in its current fiscal year.
Leadership views and timeline
Axon CEO and founder Rick Smith believes drones will become a much larger part of everyday operations across several industries. Skydio CEO Adam Bry says the added capital will help accelerate the company's technology roadmap and advance autonomous flight in other critical industries. Skydio will keep operating independently and will continue serving customers outside public safety.
The transactions are expected to close in the fourth quarter of 2026 and the first quarter of 2027, subject to customary closing conditions and final transaction terms.
