Red Cat (NASDAQ:RCAT) stock is rocketing higher on Tuesday thanks to news that it’s acquiring Teal Drones for an undisclosed sum.
Red Cat is a provider of technology to companies in the drone industry. However, its acquisition of Teal Drones, a commercial and government unmanned aerial vehicle technology leader, will have it entering the space directly.
Red Cat’s acquisition of Teal Drones will expand the company’s drone services. It already has remote inspection company Skypersonic, as well as cloud-based flight intelligence analytics platform Dronebox under its wings.
Jeff Thompson, CEO of Red Cat, said this about the news sending RCAT stock higher on Tuesday.
“Adding Teal to the family helps Red Cat naturally expand deeper into the enterprise and government spaces. Teal’s Golden Eagle drone platform and its existing access to the Department of Defense combined with the market reach and experience of Red Cat should well-position the joint group for unbridled success as the industry grows.”
With news of the deal between Red Cat and Teal Drones, RCAT stock is seeing heavier trading today. As of this writing, more than 49 million shares of the stock have changed hands. That’s a major jump compared to the company’s daily average trading volume of about 659,000 shares.
Traders looking for more stock market news to sink their teeth into today will want to keep reading!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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