COMSovereign (NASDAQ:COMS) stock is on the rise Monday after announcing its acquisition of drone company Sky Sapience.
Here’s what potential COMS stock investors need to know about the news.
- COMSovereign, a 4G and 5G provider, spent a total of $12.7 million to acquire the company.
- That includes $2.7 million in cash with the remaining $10 million coming in the form of 2.55 million shares of COMS stock.
- Sky Sapience’s main product is the HoverMast drone.
- This is a quadrotor tethered drone with uninterruptible power.
- It provides users with intelligence on nearby areas and can be used in land and naval operations.
- The HoverMast drone is largely used in military applications.
- However, it’s also been used in commercial and enterprise settings.
- Its main cases for use are in Israel, where Sku Sapience is located, but the devices have been in use around the world too.
- COMSovereign notes that one of the major benefits of the deal includes Sky Sapience’s already-strong customer base.
- That includes Israeli security forces.
- The Aerial National Security platform also sets it up for government customers in the U.S., including the Department of Homeland Security and Department of Defense.
Dan Hodges, chairman and CEO of COMSovereign, said this about the news boosting COMS stock up today.
“Sky Sapience’s unique fiber optic tether technology will allow us to implement full 4G or 5G airborne networks simultaneously with advanced surveillance payloads in a single solution, a significant competitive differentiator, bringing valuable new synergies to our aerial platform business.”
COMS stock was up 12.7% as of Monday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.