Axon Enterprise (AXON) Invests $90M in Israel's Cellebrite, Which is Going Public via a SPAC

Axon Enterprise (NASDAQ: AXON) disclosed it entered into a purchase agreement a $90 million stake in Cellebrite, which announced on Thursday it will go public in a merger with SPAC TWC Tech Holdings II Corp. (NASDAQ: TWCT)

Needham & Company analyst Scott Berg notes this is Axon's third recent minority stake taken and matches its theme of expanding its ecosystem with deeper financial ties. That said, "this deal feels different, maybe due to the price tag, but also because the Cellebrite platform is a natural extension of Evidence.com platform and Axon's RMS strategy," Berg said.

"The evidence analyzed and collected with the Cellebrite platform can be stored in the Evidence.com platform but combined with an RMS record," he added. "Because of this natural compatibility, we think this large investment could be the first step in Axon's ultimate acquisition of Cellebrite, even with the target's current $2.4Bproforma valuation."

reiterated a Buy rating and $190.00 price target on

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