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Axon to Expand Public Safety Platform With Prepared Acquisition

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Key Takeaways

  • Axon is acquiring Prepared, an AI-powered emergency communications provider.
  • Prepared's platform integrates audio, video, text, GPS and translation for faster response.
  • The deal, expected to close in early Q4 2025, enhances Axon's public safety capabilities.

Axon Enterprise, Inc. (AXON - Free Report) has inked a deal to acquire Artificial Intelligence (AI)-powered emergency communications company, Prepared. The financial terms of the transaction have been kept under wraps.

Established in 2019, Prepared provides AI tools to help public safety agencies respond faster and more effectively. Its AI-powered emergency communications platform brings together call audio, video, text, GPS and language translation in one place to give a clear picture of emergencies. The company works with more than 1,000 agencies in 49 states, serving nearly 100 million people.

AXON’s Acquisition Rationale

The latest acquisition is in line with Axon’s strategy of acquiring businesses to expand its market share and customer base. The addition of Prepared’s assistive AI toolbox will enable AXON to enhance its public safety platform by connecting every stage of the emergency response process, from the initial call to the final resolution.

Also, the integration of Prepared’s AI platform will allow the company to provide its customers with quick response times and improved decision-making capabilities, along with enhanced operational efficiency. Subject to customary closing conditions, the acquisition is expected to close at the beginning of the fourth quarter of 2025.

Other Notable Acquisitions

Acquisitions are an essential aspect of Axon’s growth strategy. In October 2024, the company acquired Dedrone, a global leader in airspace security. The inclusion of Dedrone’s advanced airspace technology boosted AXON's capability to enable customers to protect their communities against drone threats and improve response to critical incidents.

In January 2024, the company acquired Fusus, a leader in real-time crime center technology. The buyout combined Fusus’ real-time situational awareness expertise with AXON's innovative public safety technology, thereby enhancing safety and security for its customers in public places.

AXON’s Zacks Rank and Price Performance

Axon is benefiting from strength across its businesses. Its Connected Devices segment is driven by solid demand for TASER 10 devices, virtual reality training services and counter-drone equipment. An increase in the aggregate number of users to the Axon network is aiding the Software & Services segment’s growth.

AXON currently carries a Zacks Rank #3 (Hold). In the past year, the stock has gained 77.5% compared with the industry’s 33.5% growth.

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However, rising operating expenses, due to higher compensation expenses and business integration activities, have been weighing on the company’s performance. Foreign exchange headwinds may be worrying as well.

Stocks to Consider

Some better-ranked companies from the same space are discussed below.

AerSale Corporation (ASLE - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

ASLE delivered a trailing four-quarter average earnings surprise of 42.5%. In the past 60 days, the Zacks Consensus Estimate for AerSale’s 2025 earnings increased 75%.

Astronics Corporation (ATRO - Free Report) presently sports a Zacks Rank of 1. ATRO delivered a trailing four-quarter average earnings surprise of 78.5%.

In the past 60 days, the consensus estimate for ATRO’s 2025 earnings has increased 6.7%.

TAT Technologies Ltd. (TATT - Free Report) presently sports a Zacks Rank of 1. The company delivered a trailing four-quarter average earnings surprise of 3.5%.

In the past 60 days, the consensus estimate for TAT Technologies’ 2025 earnings has increased 10.7%.

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