Leonardo DRS, Israeli Electronics Firm RADA Announce Merger

Leonardo DRS, the U.S.-based subsidiary of Italy’s Leonardo and RADA Electronic Industries Ltd. have entered into a definitive agreement to create a newly combined public company. 

RADA is a provider of advanced software-defined military tactical radars. The company offers critical infrastructure protection, border surveillance, active military protection and counter-drone applications. RADA is listed on the NASDAQ and Tel Aviv stock exchanges.

Leonardo says RADA provides an enhanced value proposition with its advanced tactical radars complementary to Leonardo’s sensor portfolio, enabling a stronger position and integrated approach in emerging sectors in the tactical operating environment. It also adds a domestic presence in Israel and supports the development of the international market for Leonardo, and at the same time allowing RADA to access opportunities in European and export markets and programmes, leveraging Leonardo’s global presence.

Leonardo DRS will acquire 100% of the share capital of RADA in exchange for 19.5% equity ownership to RADA shareholders in Leonardo DRS, with Leonardo maintaining 80.5% in Leonardo DRS through its US subsidiary Leonardo US Holding (subject to approval of the stockholders of RADA and other closing conditions including the receipt of certain regulatory approvals).

Upon closing of the transaction, expected in the fourth quarter of 2022, Leonardo DRS is expected to be listed on NASDAQ and TASE under the new ticker symbol “DRS.”