Delta Drone International divests from ParaZero
Barely two years after Delta Drone South Africa and ParaZero Technologies merged to become Australian Stock Exchange (ASX)-listed Delta Drone International, it seems the two can no longer live with each other, and have decided to separate.
A wholly-owned subsidiary up until the Thursday announcement, ParaZero has now been divested for $6million into the hands of a consortium of investors led by NASDAQ-listed Medigus Ltd; an Israeli technology company focused on growth partnerships, mainly in advanced medical solutions, digital commerce and electric vehicle markets.
Other parties to the deal include Pure Capital Ltd, an investment company owned by Israeli businessman Kfir Zilberman and “executives at Pure Capital and parties that are, or are related to, other high net worth individuals advised by Pure Capital who are investing directly into the acquisition,” according to a statement from Delta Drone International.
Ostensibly, the company claims the transaction allows it to focus the the drone side of its business; that is, becoming one of the leading drone service providers globally after its acquisition of Delta Drone South Africa in December 2020 and the purchase of Australia-based Arvista Pty Ltd in in September last year.
Obviously, ParaZero being a company that focused on developing solutions biased towards drone safety, like parachutes to ensure safe landing in case of a drone crushing, may have stuck out like a sore thump, as their core business may not have aligned with where Delta Done International want to go in the immediate future.
As a drones-as-a-service provider, Delta Drone International offers drone-based solutions provides like aerial surveying and mapping, security and surveillance, and blast monitoring and fragment analysis to various industries that include agriculture, mining, security and engineering.
“ParaZero and its dedicated team were the inspiration for listing the Company on the ASX in 2018 and have been an important part of the Company since that time,” said company CEO, Christopher Clark.
“With the drone services side of our business experiencing rapid growth, we believe now is the time to focus on the drone services business and still retain the opportunity to utilise the ParaZero products and services on a commercial basis. The exposure to ParaZero that we have retained through the transaction will also enable the Company’s shareholders to benefit from the future success of the ParaZero technology.
“For the company, this sale allows us to invest in building our team and to aggressively accelerate growth across all our drone services businesses, with the vision of becoming one of the leading drone service providers in the world.”
Christian Viguié, Chairman and CEO of Delta Drone Group – Delta Drone International’s parent company – had this to say:
One year after gaining a foothold in Australia, the sale of ParaZero Israel marks the culmination of an essential step in our coherent and consistent international development strategy, which is part of the group’s desire to focus its activities on the deployment of professional drone-based solutions in three clearly identified global sectors: security, logistics and mining.
Regarding the mining sector, it is obvious that one of the main areas of operation in the world concerns the southern hemisphere and more particularly the two major countries which are South Africa and Australia. For this reason, the first step, initiated in early 2017, was to acquire the company Rocketmine in South Africa. From this solid base, the group has gradually extended its activities to the entire African continent by gradually constituting the Delta Drone South Africa sub-group, until becoming the undisputed leader of its sector in Africa.
From 2020, the opportunity to also establish itself in Australia was offered, it was seized through a merger operation with the Australian company ParaZero Ltd, a company listed on the ASX stock exchange in Sydney and immediately renamed Delta Drone International. In 2021, the establishment in Australia underwent a first major development with the acquisition of the company Arvista Pty Ltd, located in Perth in the main mining state of the island-continent, Western Australia.
It is important to point out that this world-leading position was finally acquired at a very modest investment cost. Indeed, the amount of the sale of ParaZero Israel corresponds more or less to all the sums previously invested by the group for four years.
With this now very strong position in the southern hemisphere addressed to the mining sector, the group has a base to accelerate its development throughout the area. It could also create growth opportunities in other parts of the world also affected by the mining sector, including the Americas, Canada and the United States in particular.
Rolf Schlub30 January 2022 at 03:24
I met Christopher Clarke when he was still working at PDT in 2013. I spearheaded the first deal at BECSA Wolvekraans for PDT using my personal eBee drone and my presentations to secure the deal. PDT made public displays had no affiliation or knowledge of aviation or drones and I believed that they would be a vendor conduit for us (the drone specialists). When we landed their first contract and I used my own personal computer to process all the Data for the Client and personally industrialized the operation. As with all of his other relationships, things turned sour and all he needed to do was take my receipt and deploy it at all the other mines. That is the true story behind Rocketmine.
Regrettably Cheos has not been able to retain any good partnerships throughout his career in the drone space. TerraCam, SKT, ParaZero, etc
Mic drop, I’m out