Axon invests $1.2 billion in Skydio and becomes its distributor for public safety in the United States

Axon Enterprise Inc. last week said it had invested $1.2 billion in Skydio Inc., a drone maker based in San Mateo, California. With the investment, Axon acquires 20% ownership of Skydio, which is valued at $5.2 billion.

Axon will also become the exclusive distributor of Skydio for public safety in the United States and Canada. The companies said they are collaborating to bring Skydio drones to public safety agencies across the United States. Axon is also expanding its Drone as First Responder (DFR) program.

“Within a decade, millions of drones will be operating across America. Skydio is positioned to be a leader in every industry they touch,” said Rick Smith, founder and CEO of Axon. “Axon is taking a major share in one of technology’s most valuable categories, and Skydio remains free to move quickly. With exclusive channel rights, Axon will expand its leadership in public safety drones as Skydio builds the future of American aerial robotics. Two companies, each the best at what they do, will build something far bigger than they could alone.”

Skydio said it serves more than 1,500 public safety customers. Now, more than 28 million Americans live within two miles of a DFR pier. Founded in 2014, the company said it uses AI-supported autonomy to create drones that are easier to operate, safer to fly and more capable in complex environments.

Skydio DFR gives first responders early visibility

At agencies using Skydio DFR, priority response times have been reduced by up to 65%, Scottsdale, Ariz.-based Axon said. Drones arrive before officers on about 80% of calls where they are deployed.

Such timely visibility can support safer responses, help mitigate life-threatening situations, locate missing children and other vulnerable people, and improve outcomes when every second counts, the company said.

“Axon has been an incredible partner in bringing our drones to public safety customers across the United States,” said Adam Bry, CEO of Skydio. “We are excited to deepen this partnership with Axon as our exclusive channel for U.S. and Canadian public safety. This investment strengthens our ability to accelerate our technology roadmap, increase our impact on public safety and continue to advance autonomous flight across all the critical industries we serve.”

Axon estimates the total addressable market for DFR to be approximately $13 billion in the United States and Canada alone. This opportunity is already translating into significant commercial momentum, the companies noted. Skydio said its business is growing rapidly and expects about $1 billion in total bookings in the current fiscal year.

Axon’s investment totals approximately $1.2 billion, including a mix of cash and Axon stock. The investment includes both Skydio’s primary capital and the purchase of shares from Skydio’s current shareholders. Skydio plans to use a portion of the cash consideration as growth capital to accelerate innovation, expand its product portfolio and deliver new features to customers more quickly.

Axon said it expects the transactions comprising the investment to close in the fourth quarter of 2026 and the first quarter of 2027. The deal is still subject to customary closing conditions.

Skydio isn’t the only drone provider bringing in big funding. Last week, Zipline, which provides delivery drones, raised $1.5 billion in funding. Zipline said it will use the capital to expand its U.S. manufacturing facilities and hire staff as it builds a nationwide drone delivery network.