Leonardo DRS, Inc. (“Leonardo DRS”, or the “Company”), a leading
mid-tier defense technology provider, today announced the
successful completion of the all-stock merger between Leonardo DRS
and RADA Electronic Industries Ltd. (“RADA”) to become a combined
public company (the “Combined Company”). As previously disclosed,
RADA shareholders will retain 19.5% ownership in the Combined
Company with Leonardo DRS’s parent company, Leonardo S.p.A., (MIL:
LDO), owning the remaining 80.5%. Leonardo DRS’s stock will be
listed on NASDAQ and the Tel Aviv Stock Exchange (“TASE”) under the
symbol “DRS” with RADA’s existing stock symbol converting to the
Leonardo DRS symbol effective at the opening of NASDAQ trading on
November 29, 2022 and TASE trading on November 30, 2022.
The Combined Company will be aligned to fast growing segments of
the U.S. Department of Defense (“DoD") budget with market leading
positions in advanced sensing, force protection, network computing,
and electric power & propulsion. Further, the Combined
Company’s mid-tier position provides meaningful scale coupled with
agility to respond to customer needs with affordable and
differentiated solutions. Pro forma revenue and Adjusted EBITDA in
2021 for the Combined Company was approximately $2.7 billion and
$305 million, respectively.
“We look forward to bringing Leonardo DRS’s mid-tier strength to
the public markets with the addition of RADA’s leading tactical
radar capabilities,” said William J. Lynn III, Chairman & CEO
of Leonardo DRS. “Leonardo DRS’s broad exposure to fast growing
segments in the defense market and market leading positions in
advanced sensing, force protection, network computing and electric
power & propulsion make us a unique defense contractor with a
compelling growth outlook, margin expansion capabilities and a
largely unlevered balance sheet.”
“We are pleased to have received strong shareholder support for
this transaction,” commented Dov Sella, CEO of RADA. “It has always
been our goal to maximize shareholder value, and the RADA team and
Board believe this merger represents an excellent outcome for the
Company. The RADA team looks forward to continuing to penetrate the
tactical radar market within the strong Leonardo DRS platform.”
In celebration of the transaction and the first trading under
the DRS ticker symbol, the Leonardo DRS leadership and broader
management team, led by CEO William J. Lynn III, will ring the
Nasdaq closing bell on November 29, 2022 at 4:00 pm. The bell
ringing ceremony can be seen live on U.S. financial network
television and on Nasdaq.com.
About Leonardo DRS
Leonardo DRS, Inc., headquartered in Arlington VA, develops and
manufactures advanced defense products for the U.S. military,
intelligence agencies and allies around the world. The company’s
broad technology portfolio focuses on advanced sensing, network
computing, force protection, and electric power and propulsion, as
well as a range of key defense priorities. Our innovative people
are leading the way in developing disruptive technologies for
autonomous, dynamic, interconnected, and multi-domain capabilities
to defend against new and emerging threats. See how we are shaping
the battlefield of tomorrow at www.LeonardoDRS.com.
Forward-Looking Statements
This communication includes certain forward-looking statements
and forward looking information within the meaning of the Private
Securities Litigation Reform Act of 1995 or the Israeli Securities
Law, 1968 (as applicable) (collectively, “FLI”). FLI is typically
identified by words such as “anticipate”, “expect”, “project”,
“estimate”, “forecast”, “plan”, “intend”, “target”, “believe”,
“likely”, “seek”, “aim”, “project” and similar words suggesting
future outcomes or statements regarding an outlook. All statements
other than statements of historical fact may be FLI.
Although we believe that the FLI is reasonable based on the
information available today and processes used to prepare it, such
statements are not guarantees of future performance and you are
cautioned against placing undue reliance on FLI. By its nature, FLI
involves a variety of assumptions, which are based upon factors
that may be difficult to predict and that may involve known and
unknown risks and uncertainties and other factors which may cause
actual results and outcomes to differ materially from those
expressed or implied by these FLI, including, but not limited to,
the following: the success of integration plans from the merger
transaction; the volatility of the international marketplace;
potential adverse reactions or changes to business, government or
employee relationships, including those resulting from the
announcement or completion of the transaction; general U.S.,
Israeli and global social, economic, political, credit and business
conditions; changes in laws; regulations and government policies;
changes in taxes and tax rates; customer, stockholder, regulatory
and other stakeholder approvals and support; material adverse
changes in economic and industry conditions; the pandemic created
by the outbreak of COVID-19 and resulting effects on economic
conditions; the ramifications of the Russia-Ukraine conflict, and
other risks and uncertainties listed in Leonardo DRS’s filings or
RADA’s filings with the Securities and Exchange Commission (the
“SEC”), including under the heading “Risk Factors” in Leonardo
DRS’s most recently filed Annual Report on Form 10-K as such risk
factors may be amended, supplemented or superseded from time to
time by other filings with the SEC and under the heading “Risk
Factors” in RADA’s most recently filed Annual Report on Form 20-F
as such risk factors may be amended, supplemented or superseded
from time to time.
We caution that the foregoing list of factors is not exhaustive
and is made as of the date hereof. Additional information about
these and other assumptions, risks and uncertainties can be found
in reports and filings by Leonardo DRS and RADA with the U.S.
Securities and Exchange Commission, including any prospectus,
registration statement or other documents to be filed or furnished
in connection with the transaction. Due to the interdependencies
and correlation of these factors, as well as other factors, the
impact of any one assumption, risk or uncertainty on FLI cannot be
determined with certainty.
Except to the extent required by law, Leonardo DRS assumes no
obligation to publicly update or revise any FLI, whether as a
result of new information, future events or otherwise. All FLI in
this communication is expressly qualified in its entirety by these
cautionary statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20221128005678/en/
Leonardo DRS Investor Relations Steve Vather Vice
President, Investor Relations and Corporate Finance +1 703 409 2906
stephen.vather@drs.com
Cody Slach or Jeff Grampp, CFA Gateway Group +1 949 574 3860
DRS@GatewayIR.com
Leonardo DRS Media Michael Mount Vice President,
Communications and Public Affairs +1 571 447 4624
mmount@drs.com
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