Leonardo DRS Receives Key Regulatory Approval Associated with RADA Electronic Industries Ltd. Merger

Rhea-AI Summary

Leonardo DRS, a defense technology provider, announced that it received regulatory approval from CFIUS for its merger with RADA Electronic Industries Ltd. on October 24, 2022. This approval is crucial for closing the merger, which is expected by late November or early December, pending remaining regulatory approvals. Post-merger, RADA will become a wholly owned subsidiary of DRS and will trade as DRS on NASDAQ and TASE. This partnership aims to enhance both companies' positions in the defense technology sector.

Positive

• Regulatory approval from CFIUS received, facilitating merger progress.
• Merger expected to close by late November or early December, pending other approvals.
• RADA will bolster DRS's position in the defense technology market.

Negative

• None.

ARLINGTON, Va.--(BUSINESS WIRE)-- Leonardo DRS, Inc. (“DRS”), a leading mid-tier defense technology provider, today announced that on October 24, 2022, DRS and RADA Electronic Industries Ltd. (NASDAQ & TASE: RADA) (“RADA”) received regulatory approval from The Committee on Foreign Investment in the United States (“CFIUS”), representing one of the more important regulatory approvals required as a condition to close the previously announced merger of the two companies.

With this key regulatory approval and the previously announced RADA shareholder approval, closing of the transaction is now expected to occur at the end of November or beginning of December, subject to remaining regulatory approvals. Upon closing of the merger, RADA will become a wholly owned subsidiary of DRS, and DRS will trade on the NASDAQ and TASE under the symbol “DRS”.

About Leonardo DRS

DRS is a defense solutions provider, a leading technology innovator, and supplier of integrated products, services and support to military forces, the intelligence community, and defense contractors worldwide. DRS is organized into Advanced Sensor and Computing and Integrated Mission Systems segments. Headquartered in Arlington, Virginia, Leonardo DRS is a wholly owned subsidiary of Leonardo S.p.A. See the full range of capabilities at www.LeonardoDRS.com

About RADA

RADA is a global defense technology company focused on proprietary radar solutions and legacy avionics systems. The Company is a leader in mini-tactical radars, serving attractive, high-growth markets which include active military protection (SHORAD, C-RAM), counter-UAS missions, critical infrastructure protection and border surveillance.

Forward-Looking Statements

This communication contains statements that constitute “forward-looking statements,” including with respect to the proposed merger of DRS and RADA and its impact, if completed, on the combined company’s business. Forward-looking statements are subject to numerous conditions, many of which are beyond our control. Neither RADA nor DRS undertake any obligation to update these statements, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221025005961/en/

RADA Investor Relations Contact

Ehud Helft

EK Global Investor Relations

+1 212 378 8040

rada@ekgir.com



DRS Investor Relations Contact

Cody Slach or Jeff Grampp, CFA

Gateway Group

+1 949 574 3860

DRS@GatewayIR.com



DRS Media Contact

Michael Mount

Vice President, Communications and Public Affairs

+1 571 447 4624

mmount@drs.com

Source: Leonardo DRS

FAQ

What is the significance of the CFIUS approval for RADA's merger with DRS?

The CFIUS approval is a key regulatory requirement that allows the merger to proceed, enhancing the combined company's operational capabilities.

When is the expected closing date for the RADA-DRS merger?

The merger is expected to close by the end of November or the beginning of December 2022, subject to remaining regulatory approvals.

What will happen to RADA after the merger with DRS?

After the merger, RADA will operate as a wholly owned subsidiary of DRS and will trade under the symbol 'DRS'.

How will the merger impact RADA's position in the defense market?

The merger is expected to strengthen RADA's position in the defense technology sector by leveraging DRS's resources and capabilities.