Leonardo DRS announces closing of merger with RADA

Leonardo DRS announced the successful completion of the all-stock merger between Leonardo DRS and RADA Electronic Industries (RADA) to become a combined public company. As previously disclosed, RADA shareholders will retain 19.5% ownership in the combined company with Leonardo DRS’s parent company, Leonardo S.p.A., owning the remaining 80.5%. Leonardo DRS’s stock will be listed on NASDAQ and the Tel Aviv Stock Exchange under the symbol "DRS" with RADA’s existing stock symbol converting to the Leonardo DRS symbol effective at the opening of NASDAQ trading on November 29 and TASE trading on November 30. "The combined company will be aligned to fast growing segments of the U.S. Department of Defense budget with market leading positions in advanced sensing, force protection, network computing, and electric power & propulsion. Further, the combined company’s mid-tier position provides meaningful scale coupled with agility to respond to customer needs with affordable and differentiated solutions. Pro forma revenue and Adjusted EBITDA in 2021 for the combined company was approximately $2.7 billion and $305 million, respectively," Leonardo DRS stated. William Lynn III, Chairman and CEO of Leonardo DRS, added: "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."