It's the day of debut of Drs on Nasdaq. Leonardo communicated the completion of the merger operation between the US subsidiary Leonardo Drs and Rada Electronic Industries, an Israeli supplier of military tactical radars. The transaction involves the automatic listing of Drs
Today the debut of Leonardo Drs on the Nasdaq
La merger between Leonardo Drs and Rada was announced last June. As expected, Leonardo will maintain an 80,5% stake in DRS, through the US subsidiary Leonardo US Holding, while the current shareholders of Rada will hold the remaining 19,5%.
Not only. Leonardo DRS shares will be listed both on Nasdaq and that at the Tel Aviv Stock Exchange with the “DRS” symbol. The debut on the New York hi-tech list is scheduled for today on the Nasdaq and for tomorrow, Wednesday 30 November, in Tel Aviv.
“The merger is perfectly aligned with Leonardo's strategic, commercial and financial objectives, enabling the group to achieve a unique positioning in the radar segment surface area thanks to the synergy deriving from its product portfolio together with that of Rada, Hensoldt and Gem”, communicates Leonardo through a note in which it is underlined that, thanks to this operation, Leonardo will acquire a stable domestic presence in the Israeli industrial context, supporting Leonardo's international market development, and at the same time allowing Rada to access opportunities in European and export markets and programs, leveraging Leonardo's global presence.
CEO Profumo: "Important strategic move"
Alessandro Profumo, CEO of Leonardo, commented “We have finalized the process of merger between Leonardo Drs and di Rada, an important strategic move by Leonardo in a rapidly growing segment of the defense market of today and tomorrow, represented by the Force Protection. There is an excellent level of complementarity between our US subsidiary Leonardo Drs, Rada and the rest of the Leonardo Group which will generate growth, margin expansion and further opportunities for the Group. With this operation we are also seizing the opportunity to list DRS in the current context of market volatility, thus realizing what was envisaged last year”.
In recent years, Leonardo has strengthened the competitive positioning of Leonardo DRS, delivering on promises, focusing on its core business, through the divestment of GES and AAC, and now making a significant strategic step forward through the combination with RADA, adding a solid business in active defense solutions.
“We are preparing to bring Leonardo DRS mid-tier presence to market enhanced by Rada's tactical radar solutions,” he said. William J. Lynn III, president and CEO of Leonardo Drs. “Leonardo Drs' broad exposure to rapidly growing segments of the defense market and market leading positions in advanced sensing, force protection, network computing, electric generation and propulsion make us a unique defense supplier with strong growth opportunities, ability to expand margins, and strong balance sheet and financial position.”
