RADA - Leonardo DRS agrees with RADA over all-stock merger deal

RADA Electronic Industries (NASDAQ:RADA) and Leonardo DRS have entered into a definitive agreement to merge into a combined public company, pursuant to which RADA will become a wholly-owned subsidiary of Leonardo DRS and operate as a business unit  including its U.S. subsidiaries within DRS’s Advanced Sensing and Computing segment. Per the terms, Leonardo DRS will acquire 100% of the share capital in RADA in exchange for ~19.5% equity ownership to RADA shareholders in the combined company. The 19.5% ownership in the combined company provided to RADA shareholders was designed to provide a premium in excess of 20%. Pro forma for the merger, Leonardo SpA and RADA shareholders will own ~80.5% and 19.5%, respectively, of the combined Company on a diluted basis, which will maintain the name Leonardo DRS and is anticipated to trade on NASDAQ and TASE under the symbol “DRS.” The all-stock merger combines Leonardo DRS, a leading U.S.-based mid-tier defense technology provider, and

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Leonardo DRS agrees with RADA over all-stock merger deal