Redwire shares leap on acquisition news

Investing.com -- Redwire Corporation (NYSE:) banal surged 12% pursuing the company's announcement that it has signed an statement to get Edge Autonomy, a person successful uncrewed airborne strategy technology. The acquisition, valued astatine $925 million, is expected to importantly heighten Redwire's presumption successful the multi-domain autonomous exertion sector.

The deal, which involves a outgo premix of $150 cardinal successful currency and $775 cardinal successful Redwire communal stock, is anticipated to beryllium instantly accretive to Redwire's revenue, Adjusted EBITDA, and Free Cash Flow upon closing. Redwire forecasts that the combined institution volition make revenues betwixt $535 cardinal and $605 million, with Adjusted EBITDA ranging from $70 cardinal to $105 cardinal for the 12 months ending December 31, 2025, assuming the transaction was completed astatine the commencement of the year.

Edge Autonomy brings to Redwire a wealthiness of acquisition successful processing autonomous exertion systems, with beardown ties to the U.S. Department of Defense and allied governments. The acquisition is acceptable to broaden Redwire's portfolio of abstraction platforms and heighten its capabilities successful debased Earth orbit, mean Earth orbit, and geostationary orbit operations. The summation of Edge Autonomy's combat-proven technologies is expected to make integrated solutions for multi-domain operations extending from Earth's aboveground to the satellite and beyond.

Peter Cannito, Chairman and CEO of Redwire, commented connected the strategical acceptable of the acquisition, highlighting the convergence of abstraction and airborne platforms into a web of autonomous, collaborative systems. Steve Adlich, CEO of Edge Autonomy, besides expressed enthusiasm for the merger, emphasizing the shared committedness to innovation and lawsuit restitution betwixt the 2 companies.

The transaction is taxable to customary approvals, including a Redwire stockholder ballot and regulatory clearances, with an expected closure successful the 2nd 4th of 2025. Redwire has the enactment to concern the currency information of the acquisition terms done assorted means, including currency connected hand, existing recognition facilities, oregon caller indebtedness facilities, capitalizing connected the anticipated enlargement of its Adjusted EBITDA and escaped currency flow.

Redwire's Board of Directors and a peculiar committee person approved the transaction, with cardinal shareholders besides agreeing to ballot successful favour of the transaction proposals. A league telephone to sermon the transaction details is scheduled for 9:00 a.m. ET connected Tuesday, January 21, 2025.

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