Leonardo announces the completion of the merger transaction between the US subsidiary Leonardo DRS and RADA

(To Leonardo)
29/11/22

Leonardo announces the completion of the merger between the US subsidiary Leonardo DRS, Inc. ("Leonardo DRS") and the Israeli company RADA Electronic Industries Ltd. ("RADA"), with automatic listing of Leonardo DRS. As previously announced, Leonardo will continue to hold the 80,5% stake in Leonardo DRS, through the US subsidiary Leonardo US Holding, while the remaining 19,5% will be assigned to the current shareholders of RADA. Leonardo DRS shares will be listed on the NASDAQ and the Tel Aviv Stock Exchange ("TASE") under the ticker symbol "DRS" effective from the opening of trading on the NASDAQ on November 29, 2022 and the TASE on November 30, 2022.

The merger is perfectly aligned with Leonardo's strategic, commercial and financial objectives, allowing the Group to achieve a unique position in the surface radar segment thanks to the synergy deriving from its product portfolio together with that of RADA, Hensoldt and GEM. The transaction will also guarantee Leonardo a stable domestic presence in the Israeli industrial context, supporting the development of Leonardo's international market, and at the same time allowing RADA to access opportunities in European and export markets and programs, leveraging Leonardo's global presence. Leonardo. The transaction will also make it possible to draw the benefits deriving from the listing of Leonardo DRS.

Alessandro Profumo, CEO of Leonardo, commented “We have finalized the merger process between Leonardo DRS and RADA, an important strategic move by Leonardo in a rapidly growing segment of the defense market of today and tomorrow, represented by Force Protection. There is an excellent level of complementarity between our Leonardo DRS US subsidiary, 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,” said William J. Lynn III, President and CEO of Leonardo DRS. rapidly growing 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 prospects, margin expansion capabilities and solid balance sheet and financial position.”

consultants

For the financial aspects Leonardo DRS is assisted by JP Morgan Securities LLC. For the legal aspects Sullivan & Cromwell LLP and Herzog Fox & Neeman are the consultants of Leonardo DRS.

Forward-Looking Statements

This release contains statements that constitute "forward-looking statements," including in relation to Leonardo DRS, Inc., RADA Electronic Industries Limited and the Integrated Company. Forward-looking statements are subject to many conditions, many of which are beyond our control. Neither Leonardo, RADA nor Leonardo DRS undertakes any obligation to update these statements, except as required by law.

rheinmetal defense