Leonardo, its US subsidiary Leonardo DRS, Inc. and RADA Electronic Industries Ltd. announced the completion of the merger and that they became a combined company.

Leonardo, through its US subsidiary Leonardo US Holding, will hold an 80.5% stake in the Combined Company, with RADA’s current shareholders holding the remaining 19.5%. Shares of Leonardo DRS will be traded on the NASDAQ and Tel Aviv Stock Exchange under the symbol “DRS” from the opening of trading on the NASDAQ on 29^th November 2022 and TASE on 30^th November 2022.

This merger, which provides significant strategic, commercial and financial benefits for Leonardo, leads the Group to a key position in the land radar segment, thanks to the merger from its product portfolio with RADA, Hensoldt and GEM. This merger is expected to support the further development of Leonardo’s international markets, while enabling RADA to leverage Leonardo’s global presence to access opportunities in European and export markets and programmes.

CEO of Leonardo Alessandro Profumo said: ‘’ Completing the process of combining Leonardo DRS and RADA is Leonardo’s key strategic move in the rapidly growing force protection market, which is at the heart of the defence market of today and tomorrow. There is a perfect fit between our US subsidiary Leonardo DRS, RADA and the Leonardo Group to drive growth, margin growth and opportunities. With this transaction, we also fulfill our promise by taking the opportunity to list Leonardo DRS in the context of current volatile markets.’’

Having successfully strengthened the competitive position of Leonardo DRS in recent years, Leonardo has taken an important strategic step forward by merging with RADA, adding a strong business in active defence solutions.

William J. Lynn III, Chairman and CEO of Leonardo DRS said: ‘’ We look forward to bringing the midrange power of the Leonardo DRS to the public markets with the addition of RADA’s leading tactical radar capabilities. Leonardo DRS’ broad exposure to rapidly growing segments in the defense market and market-leading positions in advanced sensing, force protection, network computing, and electric power and propulsion have ushered in an attractive growth outlook, margin-expansion capabilities and a largely leveraged balance sheet – these are making it a unique defense contractor.’’