Leonardo DRS to acquire Israeli company RADA, eyeing the counter-drone market

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Leonardo DRS and RADA have already collaborated on certain projects, such as the army’s Stryker M-SHORAD program. (RADA)

WASHINGTON: Leonardo DRS, the U.S. subsidiary of Italian defense giant Leonardo, has announced plans to buy Israeli company RADA – the merged company heading to the NASDAQ stock exchange.

Under the agreement, announced Tuesday morning, Leonardo DRS will acquire 100% of RADA, with shareholders of the Israeli company obtaining 19.5% of the capital of the combined company, which will operate under the name Leonardo DRS. The deal is expected to close in the fourth quarter of this year.

Both companies specialize in defense electronics and radars, or as a press release announcing the deal puts it, “force protection and multi-domain integrated systems.” RADA’s product line focuses on tactical radars, with equipment ranging from short-range mobile air defense to counter-drone capabilities. There are already overlaps on some products, such as radars manufactured by RADA that will be equipped on the DRS solution for the Stryker M-SHORAD design.

“RADA’s unique advanced tactical radars are complementary to Leonardo DRS and should enhance its position as an air defence, counter-UAS and vehicle protection integrator in the force protection market segment,” the report said. communicated. “For RADA, the association with Leonardo DRS should significantly strengthen its global competitive positioning and increase its scale, program diversity, cash generation and addressable market, offering significant opportunities for future growth and value creation. “

According to a presentation to investors, the combined company will have roughly divided its business into three sectors: “advanced detection”, “networked computing” and “force protection”. A fourth sector, “electric power and propulsion”, will also be important, but a little less in dollar terms.

In a statement, Leonardo DRS chief William Lynn said real-world factors played a role in advancing the acquisition: “The conflict in Ukraine has underscored the vulnerability of forces to drone attacks and highlighted the need for modern and capable force protection. systems. Not only does this accelerate American purchases of these systems, but it pushes European countries, which are lagging far behind in this area, to acquire more critical force protection means. The combination of RADA and Leonardo DRS will open up international market opportunities, especially in short-range air defense, counter-UAS, counter-rockets, artillery and mortars (C-RAM) and protection systems cars.

Breaking Defense plans to interview Lynn later that day; check back for updates this afternoon.

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