Drone operator Aerodrome acquires FlyTech

Roy Degani Photo: PR
Roy Degani Photo: PR

FlyTech operates in the commercial field and Aerodrome plans concentrating all its commercial activities in the acquired company.

Israeli unmanned aerial systems operator Aerodrome Group Ltd. (TASE: ARDM) announced that it has acquired FlyTech, which specializes in providing advanced aviation services and solutions in the commercial market. FlyTech operates in the commercial field and Aerodrome plans concentrating all its commercial activities in the acquired company. The acquisition will help Aerodrome enter the US commercial market.

Aerodrome will acquire from the sellers all the capital shares of FlyTech and after completion of the transaction Aerodrome will hold 100% of FlyTech's capital shares, in full dilution. On the date of the completion of the transaction, Aerodrome will pay the sellers a total of NIS 4.3 million in exchange for FlyTech shares and will allocate to them 2.5 million regular shares of the company.

FlyTech is Aerodrome's first acquisition. Aerodrome has bought a company that is an operator and thus works mainly in the commercial sector where the rate of growth in Israel and worldwide is increasing significantly. Due to its experience, the acquisition will help Aerodrome learn about methods and the work in the commercial sector, and will bring it major knowhow, including pricing methods, contracts with quality customers, and knowhow in creating value in target markets that the company is aiming for in the commercial market.

FlyTech is an Israeli company specializing in providing advanced aviation services and solutions based on unmanned aircrafts systems (UAS) (drones) including training, handling complex regulatory procedures. The company operates in the commercial and internal security sectors and provides aviation services based on the advanced UAS (drones) that it owns. FlyTech has longstanding connections with commercial and government agencies in the fields of infrastructures, renewable energy, law enforcement, and organizations mapping and protecting the environment.

FlyTech's revenue doubled in the first half of 2021 with sales of NIS 1.6 million and an operating profit margin of about 40%. The company's customers include: Intel, Motorola, Mekorot, Israel Electric Corp., NTA Metropolitan Mass Transit System, Israel Land Authority, Israel Railways, Tel Aviv - Jaffa Municipality, Ministry of Internal Security (Police and Fire Service), Israel Nature & Parks Authority, Ministry of Agriculture, Ministry of Defense and more.

Aerodrome founder & CEO Roy Degani said, "We see the commercial sector as a very significant engine of growth for the company in the coming year and after Aerodrome has positioned itself as a leading global player with a major reputation in the defense sector, we are taking advantage of these assets and entrrting the commercial market, with FlyTech coordinating the Group's commercial division." <p."The acquisition of FlyTech is a first and major foothold in the commercial market and will allow us to diversify and expand the products and services that we provide to our customers and mainly to support the implementation of our global growth strategy and allow significant penetration into the US - the world's biggest market."

"Aerodrome will expand its activities in entering the US market through additional acquisitions, which will significantly increase the scale of its activities and its international deployment, and which will allow us to enjoy a high rate of growth in this flourishing market, especially in the commercial sector."

"This acquisition opens the way for more purchases and expansion of the company's activities in the growing commercial market. The extensive activities of FlyTech, will serve us in both the short term and the long term in entering new activities (through unmanned aircraft systems) and will reinforce the capabilities for each and every one of our present and future customers."

Published by Globes, Israel business news - en.globes.co.il - on July 12, 2021

© Copyright of Globes Publisher Itonut (1983) Ltd. 2021

Roy Degani Photo: PR
Roy Degani Photo: PR
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