Leonardo DRS and RADA join forces to take on force protection challenges
RADA supplies software-defined military tactical radars. (Photo: RADA)
Leonardo DRS and RADA Electronic Industries have entered into an agreement to create a new combined company to deliver force protection solutions.
Italian defence giant Leonardo announced on 21 June that its US subsidiary Leonardo DRS and Israeli supplier RADA Electronic Industries have entered into a definitive agreement to create a new combined public company to compete in the force protection market.
RADA provides software-defined military tactical radars and is described as a leader in mini-tactical radars. Its solutions can be used in APS, C-UAS, SHORAD on the move and 3D perimeter surveillance systems.
The deal involves an all-stock merger transaction and is expected to enable the new company to reach a stronger position in the tactical operating sector.
A release from Leonardo pointed out that the joint effort supports development of the international market for Leonardo and allows RADA to access opportunities in European and export markets and programmes.
Leonardo DRS will acquire 100% of the share capital of RADA in exchange for 19.5% equity ownership by RADA shareholders in Leonardo DRS, with Leonardo maintaining 80.5% in DRS through its US holding company.
Expected to be concluded in Q4 of 2022, the transaction is now subject to regulatory approval as well as a RADA stockholder vote.
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