Regulation expected to open the way for M&A growth in drone sector

Investors are starting to talk up the prospects for increased growth and M&A activity in the drone sector once long-awaited rules are introduced to pave the way for commercial flights.

Record number of UK companies plan acquisitions over next year

The development of rules by the Federal Aviation Authority to facilitate commercial use of drones in the US has been cited as a critical turning point for the sector by independent investment researchers Aton Re Partners. Writing about manufacturer AeroVironment, they conclude: 'We remain confident in the stock's EPS [earnings per share] upside potential in view of emerging commercial applications for drones. And we reiterate that AeroVironment could attract M&A attention soon, specifically from tech giants seeking to offer new services to their customers and to catch up with Google, which is moving fast on drone-based services.'

Commercial potential 

The interplay between regulation and the commercial potential of the robotics market, including drones, is the central theme of new title Robotics Law Journal, which is launched in a few days. Anyone wishing to receive a free sample issue should send an email to the editor at [email protected] 

Sources: Robotics Law Journal and Seeking Alpha

Email your news and story ideas to: [email protected]

Top