Red Cat Holdings Inc. has entered into an agreement to acquire first person view (FPV) and drone racing hardware provider Rotor Riot.

Red Cat notes that from 2018 to 2019, Rotor Riot’s revenue grew approximately 44 percent year-over-year. Red Cat adds that its acquisition of Rotor Riot will provide the necessary resources and combined expertise to facilitate more growth for both companies.

“We believe this deal is another significant milestone in our strategy to fuel rapid growth,” says Jeff Thompson, CEO of Red Cat.

“Rotor Riot is not only a leading provider of FPV and drone racing hardware, but the company is also a trusted resource and deeply embedded in the global FPV community. Combining our companies will further align our SaaS platform and data capabilities with cutting edge hardware available today, and provide a solid foundation for us to develop and engineer new and exciting technologies for both the drone hobby lifestyle and commercial industry.”

With plans to continue building and accelerating its drone black box and Software as a service (SaaS) business, Red Cat also plans to use its existing data analytics platform to develop a “robust customer support system” for Rotor Riot.

“As an FPV pilot myself, getting to see Rotor Riot into this next phase is exhilarating. Our dream is to bring FPV drone sports to the mainstream by inspiring people to embrace this hobby and help them overcome the barriers to entry,” comments Drew Camden, president of Rotor Riot.

“It’s exciting to partner with Red Cat because they share this vision and their resources will help us double down on our efforts.”

2019 was a banner year for Rotor Riot. Not only did the company experience substantial growth in its revenue, but Rotor Riot also worked closely with DJI—whom entered into the FPV space last year with a new system to get more people into the hobby— to create content that demonstrates the new system’s capabilities. The companies plan to work together moving forward to support each other's efforts. 

On Dec. 29, 2019, Rotor Riot Team Pilot Alex Vanover won the Drone Racing League World Championships.