Axon Enterprise (AXON), a maker of police body cameras and Taser devices, is in talks to buy Prepared, a startup that builds software for emergency responders. According to a report by The Information, the deal could be worth between $800 million and $900 million.
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AXON shares have gained 26% this year and now carry a market value of $50 billion. Chief Executive Rick Smith has said Axon is well placed to use AI, thanks to the large base of cameras and sensors already in use by public safety agencies.
Prepared was founded in 2019 by three classmates from Yale University. It has raised about $130 million from backers including General Catalyst, Andreessen Horowitz, First Round Capital, and M13. The company was last valued at $550 million in a financing round this year. It is still small in terms of sales, but it has told investors that revenue may reach $2.5 million per month by the end of the year.
Expanding AI in Public Safety
Prepared’s software uses artificial intelligence to turn 911 call transcripts into short notes for dispatchers. It can also translate in real time for callers who speak different languages. Last year it added tools that let 911 centers handle texts and images in more than 100 languages.
Axon has been expanding into software alongside its hardware. Nearly half of its $2.1 billion in revenue last year came from subscriptions tied to its devices. In 2024, the company introduced Draft One, which uses generative AI to help officers write reports from body camera audio.
Is Axon Enterprise a Good Stock to Buy?
Axon Enterprise draws a bullish sentiment from the Street’s analysts, with a Strong Buy consensus rating. The average AXON stock price target stands at $887.57, implying an 18.06% upside from the current price.
