Leonardo DRS and RADA Electronic Industries agree to merge all shares

Leonardo SpA announced on Tuesday that it has agreed to divest its US business to Rada Electronic Industries Ltd. to merge in an all stock transaction that will create a newly publicly traded company.

LDO of the Italian helicopter manufacturer,
Leonardo DRS subsidiary acquires 100% of Nasdaq-listed, Israel-based defense technology company Rada RADA,
in exchange for a 19.5 percent equity stake in Leonardo DRS for Rada shareholders. Leonardo will retain the remaining 80.5% stake in Leonardo DRS, it said.

The new company will begin trading in New York and Tel Aviv under the ticker symbol DRS when the transaction closes, expected in the fourth quarter of this year, subject to approvals, Leonardo said.

Rada has a market cap of $578.6 million, according to FactSet, and is a leader in tactical mini-radars, serving attractive, high-growth markets, Leonardo said.

The transaction will give Leonardo a presence in Israel and help it develop internationally, the company said.

Write to Joshua Kirby at; @joshualeokirby Leonardo DRS and RADA Electronic Industries agree to merge all shares

Brian Lowry

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