Point Roberts, Washington and Delta, British Columbia--(Newsfile Corp. - January 16, 2020) - Investorideas.com, a leading investor news resource covering drone and unmanned vehicle stocks releases a sector snapshot on the race for dominance in the drone market.
Read the full drone stocks article on Investorideas.com
Research and Markets just reported, "The global drones market reached 18.11 Billion USD in 2018 by registering a CAGR of 19.90% across the globe. Moreover, the market is expected to reach 88.57 Billion USD by the end of 2027."
They also noted, "The growing applications of drones in the commercial sector such as oil & gas, construction, energy, entertainment, healthcare, and delivery industries accompanied with others are anticipated to drive the growth of drones market during the forecast period."
Recognized as being a leader and at the forefront of technology for over 21 years, Saskatchewan based Draganfly Inc. (CSE: DFLY) (OTCQB: DFLYF) (FSE: 3U8) is aiming high and expanding the company's presence with an acquisition that adds on another 10 years of expertise.
As an article in General Aviation News reported yesterday, "Since the beginning, Draganfly's drones and unmanned aerial systems have paved the way for many others to follow."
Draganfly, an industry-leading systems developer within the commercial Unmanned Aerial Vehicle ("UAV") and the Unmanned Vehicle Systems ("UVS") industry announced today that it has entered into an arm's-length definitive share purchase agreement, dated January15, 2020, with the shareholders of Dronelogics Systems Inc. which sees Draganfly acquiring all of the shares of Dronelogics for cash and common shares of Draganfly.
Dronelogics is a solutions integrator for custom robotics, hardware and software that provides a wide scope of services including sales, training, rentals, maintenance, flying and data processing services based in Vancouver, Canada.
• The Transaction continues to establish Draganfly as a leading, diversified drone organization. Dronelogics has been growing steadily with revenues in excess of CAD$3.0 million and expected 2019 year-over-year growth of 20.0%. Draganfly management believes the Transaction will generate combined pro forma revenue of between CAD$6 to CAD$7 million for the fiscal year 2020, representing an increase in Draganfly's revenue of between 23% and 43%.
• Strategically Positioned to Leverage Draganfly's Brand: Dronelogics is a complementary business to Draganfly and the acquisition of Dronelogics will expand the product offering of Draganfly in the integration and engineering segments. This will expand Draganfly's total addressable market and enhance its position as a leader in the UAV and UVS industry.
• Expanded Customer Base: Draganfly and Dronelogics have limited overlap in customer base, representing an opportunity to cross-sell the expanded product offerings and further customized solutions to existing clients.
• Established History of Providing Drone Services: Dronelogics has been in business for 10 years, working closely with Fortune 500 companies to provide insights into inventory metrics, asset management, volume-metric calculation and digitizing assets, among many other applications.
Dronelife.com, looking at predictions for 2020, quoted an inside expert in the sector. "This year, while the industry will grow, we do expect consolidation. Established players in the drone ecosystem will focus on revenue generation and continued growth, and smaller players might merge with others."
Draganfly Inc. (CSE: DFLY) (OTCQB: DFLYF) (FSE: 3U8) is banking on just that strategy as it flies into 2020 with its acquisition.
Cameron Chell, Chairman and CEO stated, "We are excited to welcome the whole Dronelogics team as part of Draganfly. Dronelogics has established itself as a trusted drone service provider. Its business is highly complementary to our business and the combined entity will deliver an enhanced product and service offering to the combined client base. This transaction further establishes Draganfly as a leading, publicly traded drone company, and provides a strong platform for us to pursue continued consolidation in the industry."
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