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June 22, 2022

Leonardo DRS and RADA sign agreement for merger

The deal is expected to be completed in the fourth quarter of this year.

Leonardo’s US subsidiary Leonardo DRS and Israel-based RADA Electronic Industries have signed a definitive agreement for a merger to become a combined public company.

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The merger is expected to turn the combined entity into a market leader in advanced sensing and force protection.

The deal is expected to be completed in the fourth quarter of this year.

Following the deal closure, RADA will become a wholly owned Israeli subsidiary of Leonardo DRS, which is expected to be listed on the NASDAQ and Tel Aviv Stock Exchange.

Including its US subsidiaries, RADA will operate as a business unit within DRS’s Advanced Sensing and Computing segment.

RADA’s advanced tactical radars complement Leonardo DRS’s solutions and are expected to improve the latter’s position in the force protection market segment as an air defence, counter-UAS, and vehicle protection integrator.

For RADA, the merger with Leonardo DRS is expected to improve its competitive positioning in the global market and boost its scale, programme diversity, and cash generation.

Leonardo DRS will buy 100% of the share capital in RADA in return for approximately 19.5% equity ownership to RADA shareholders in the merged entity.

The merged firm will carry the name of Leonardo DRS.

The board of directors of both RADA and Leonardo gave approval for the deal.

In 2021, the combined firm had a revenue of $2.7bn and an adjusted EBITDA of $305m.

Leonardo DRS CEO William J Lynn III said, “The transaction provides flexibility for the combined company to add capabilities in Leonardo DRS’ core markets through targeted acquisitions and strategic investments as we expect to supplement strong organic growth with M&A and dividend distributions as part of our overall strategy going forward.”

RADA CEO Dov Sella said, “The combination of two leading technology-focused defence companies with diversified exposure to key US Department of Defence programmes and an international presence creates a true win-win for RADA and Leonardo DRS shareholders.”

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Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

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