Red Cat to Take Over Fat Shark to Expand Presence in the First-Person View Drone Business
Red Cat Holdings is set to acquire Fat Shark Holdings, the market leader in FPV headsets.
FREMONT, CA: Red Cat Holdings, Inc. announces today the signing of a definitive agreement to acquire Fat Shark Holdings, the market leader in FPV headsets. The transaction is expected to close on or before 1st November 2020. Established in 2007, Fat Shark is the leading provider of headsets and goggles for professional racers and drone pilots with an estimated market share of 85 percent. Fat Shark is currently generating approximately $7 million (unaudited) in annual revenues, significantly increasing the combined companies' revenue base. The Company's acquisition follows this transaction in January 2020 of Rotor Riot, a leading provider of FPV and the drone racing hardware.
"Our expected acquisition of Fat Shark improves our position by providing direct access to premier FPV technology favored by professional racers and drone enthusiasts alike. The partnership not only gives a fully-integrated supply chain but also adds design and development capabilities and also international manufacturing and distribution. Greg French and Allan Evans brings the world-renowned skills and decades of experience to our team. Fat Shark's existing digital platform and innovation also offers a valuable road map to fuel our future growth and our expansion into the enterprise drone market," said Jeff Thompson, CEO of Red Cat. "Importantly, it positions us to continue to develop and introduce innovative products and solutions as commercial applications of drone technology expand in the coming years."
"Red Cat has evolved as a leader in the FPV sector of the drone industry and we are excited to join their growing team of business professionals," said Greg French, founder and CTO of Fat Shark. Added Allan Evans, CEO of Fat Shark, "We are excited to collabortae and integrate feedback from the top pilots at Rotor Riot as we develop and widen our digital video systems. Rotor Riot is especially well situated to allow us build better FPV products and also expand into enterprise training and field solutions."
"With the addition of Fat Shark to Red Cat's portfolio we have paired a quality hardware base with Rotor Riot, a robust educational/entertainment brand," said Chad Kapper, CEO of Rotor Riot. "Fat Shark's new line of digital headsets with their "out of the box" functionality meshes perfectly with our popular "Ready To Fly" (RTF) packages. We are excited to promote their functionality on our YouTube channel and our digital store at www.rotorriot.com as well as leverage the strong brand recognition Rotor Riot enjoys. We believe the addition also allows us to continue expansion into the emerging gaming and augmented reality (AR) markets with future innovative products."