Leonardo DRS, Inc. on Tuesday said that it received approval from the Committee on Foreign Investment in the United States (CFIUS) to acquire Israel’s RADA Electronic Industries [RADA], clearing a key hurdle to complete the deal and become a publicly traded company.
The acquisition is expected to close at the end of November or early December subject to final regulatory approvals. Once completed, Leonardo will take RADA’s spot on the Nasdaq, where it will trade using the stock ticker symbol “DRS.”
The CFIUS approval is one of the key milestones in completing the acquisition, which was first announced in June. RADA shareholders previously approved the deal.
In addition to creating a path to becoming a public company, the acquisition will add radar as a new sensor to Leonardo DRS’ product suite. At the annual Association of the U.S. Army conference earlier this month, Leonardo DRS showcased a new counter-unmanned aircraft system platform integrated on a Stryker combat vehicle that included a radar from RADA.
Leonardo DRS is part of Italy’s Leonardo. Leonardo will have an 80.5 percent stake in Leonardo DRS and RADA shareholders will hold the remaining shares. RADA had $117 million in sales in 2021, and combined with Leonardo DRS, overall sales of the two companies last year were $2.7 billion.