Leonardo DRS, a leading mid-tier defense technology provider, has announced a successful all-stock merger with RADA Electronic Industries Ltd. RADA shareholders will retain 19.5% ownership in the combined company, with Leonardo’s parent company, Leonardo S.p.A., owning the remaining 80.5%. The stock of the new combined company will be listed on the NASDAQ and the Tel Aviv Stock Exchange (TASE) under the symbol “DRS” on November 29th and November 30th, respectively.
The combined company is poised to assume market-leading positions in advanced sensing, force protection, network computing, and electric power & propulsion. With the combination of technologies, the new entity will be in a position to provide a variety of solutions based on the needs of the customer.
William J. Lynn III, the Chairman & CEO of Leonardo DRS commented,“We look forward to bringing Leonardo DRS’s mid-tier strength to the public markets with the addition of RADA’s leading tactical radar capabilities.” “Leonardo DRS’s broad exposure to fast growing segments in the defense market and market leading positions in advanced sensing, force protection, network computing and electric power & propulsion make us a unique defense contractor with a compelling growth outlook, margin expansion capabilities and a largely unlevered balance sheet.”
“We are pleased to have received strong shareholder support for this transaction,” said Dov Sella, CEO of RADA. “It has always been our goal to maximize shareholder value, and the RADA team and Board believe this merger represents an excellent outcome for the Company. The RADA team looks forward to continuing to penetrate the tactical radar market within the strong Leonardo DRS platform.”