Redwire Expands: Acquisition of Edge Autonomy Strengthens Market Position

Redwire, a leading provider of space infrastructure technology, has announced the acquisition of Edge Autonomy for a total of 925 million USD, a mix of cash and stock transactions. This strategic expansion allows Redwire to enhance its product portfolio with Edge's unmanned technologies. Specifically, Redwire plans to pay 150 million USD in cash, while the remaining amount of 775 million USD will be settled in Redwire shares at a price of 15.07 USD per share. This transaction is still subject to approval by regulatory authorities and Redwire’s shareholders and is expected to close in the second quarter. Early trading saw Redwire's stock already increase by 12%. Edge Autonomy, a specialist in unmanned aerial systems, employs approximately 600 people and produces both in the USA and Europe. Following the completion of the transaction, Edge Autonomy and its subsidiaries will be fully integrated into the Redwire Group. Redwire sees this merger as an opportunity to expand its offerings with battle-tested autonomous aerial systems. Peter Cannito, CEO of Redwire, emphasizes that this merger creates a uniquely positioned aerospace and defense company focusing on two of the fastest-growing trends in defense technology. The acquisition is expected to have positive effects on revenue, adjusted EBITDA, and free cash flow. By 2025, Redwire expects an annual revenue between 535 million and 605 million USD in total. To finance the cash payment, existing cash reserves, new debt facilities, or a capital increase could be used, which could affect the per-share price paid of 15.07 USD. Steve Adlich, CEO of Edge Autonomy, also expressed enthusiasm about this merger and sees significant synergies between the companies. Both firms place great value on technological innovation, reliability, and customer satisfaction and expect continued growth from the merger.