Leonardo DRS and RADA partner on the mission-equipment package that is mounted on a Stryker ground vehicle for the US Army's Maneuver Short Range Air Defense (M-SHORAD) system. (US Army)
Leonardo DRS, the US defence subsidiary of Italy's Leonardo, and Israeli radar provider RADA Electronic Industries, which announced in June that they plan to merge, are on track to complete the combination in late November or early December, according to DRS's top executive.
The proposed transaction is proceeding through the regulatory process “as expected” and has received the approval of Israel's Ministry of Defense, DRS chairman and CEO William Lynn told Janes on 4 October while gearing up to participate in the Association of the United States Army (AUSA) 2022 conference in Washington, DC. The RADA shareholder vote, which is scheduled to wrap up on 19 October, seems to be “going well”, Lynn said.
DRS has begun integration planning with RADA, which includes discussing how various functions will be combined. DRS intends to operate RADA as its eighth line of business, replacing the Global Enterprise Solutions (GES) satellite communications business that it sold in August 2022.
The combined company will be publicly traded and will have about USD2.7 billion in annual revenue. Leonardo will own about 80.5% of the combined company, while RADA shareholders will hold the remaining 19.5%.
Lynn said that combining DRS's integration capabilities with RADA's threat-detecting radars will improve each entity's competitiveness in the growing force protection market, including short-range air defences, counter-drone systems, and vehicle-protection systems.
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