MILAN (Reuters) -The Israeli company RADA Electronic Industries and Leonardo’s U.S. electronics business DRS have agreed to a stock-for-stock takeover, the Italian defence group said Tuesday.
Under the agreement, DRS will buy all of the shares of the Israeli company that makes tactical radar equipment. RADA’s shareholders will then get a 19.5 percent stake in the new company.
When the deal closes, which is expected to happen in the fourth quarter of this year, DRS will be listed on the Nasdaq and Tel Aviv stock exchanges. Leonardo did not say how much the deal was worth.
Last year, Leonardo put off an initial public offering (IPO) of a minority stake in DRS because the U.S. defence budget was uncertain and investors were worried about rising interest rates.
