RADA Agrees To All-Stock Merger With Leonardo DRS

• RADA Electronic Industries Ltd.(NASDAQ:RADA), an Israel-based provider of small-form tactical radars, and Leonardo DRS Inc have agreed to merge and become a combined public company.
• U.S.-based mid-tier defense technology provider Leonardo DRS is a wholly-owned subsidiary of Leonardo S.p.A. (OTC:FINMY).
• Leonardo DRS will acquire 100% of the share capital in RADA in exchange for ~19.5% equity ownership in the combined company to RADA shareholders.
• The combined company will maintain the name Leonardo DRS and is anticipated to trade on NASDAQ and TASE under the symbol "DRS."
• RADA will become a wholly-owned subsidiary of Leonardo DRS.
• RADA expects the transaction to be accretive to earnings per share in year one.
• The 19.5% ownership in the combined company provided to RADA shareholders was designed to provide a premium of over 20% (based on RADA 30-day VWAP as of June 17, 2022, of $11.76).
• The combined company had revenue of $2.7 billion and $305 million of Adjusted EBITDA in FY21.
• The combined company targets a low teen Adjusted EBITDA CAGR through FY23 from an FY21 base of $305 million.
• Price Action: RADA shares are trading lower by 3.35% at $11.25 and FINMY higher by 10.93% at $5.38 on the last check Tuesday.