Redwire, a space infrastructure company, has announced a significant acquisition, purchasing drone manufacturer Edge Autonomy for a substantial $925 million. This strategic move marks a major shift for Redwire, propelling it into a leading position within the defense technology sector. The transaction, disclosed on January 20th, involves a payment structure of $150 million in cash and $775 million in stock. Edge Autonomy, based in California, is a prominent developer of military uncrewed aircraft systems, with its technology notably deployed in support of Ukrainian forces battling Russia.
The acquisition is anticipated to finalize in the second quarter of 2025, contingent upon shareholder and regulatory approvals. Post-acquisition, Edge Autonomy and its subsidiaries will operate under the Redwire umbrella as wholly-owned entities. Peter Cannito, Redwire's chairman and CEO, emphasized the strategic value of this merger in a subsequent analyst call. He highlighted the acquisition's positioning of Redwire to capitalize on the burgeoning market for autonomous warfare, fueled by drone technology and artificial intelligence.
This merger is noteworthy for its scale and strategic implications. It significantly expands Redwire's reach into the defense market, forecasting a combined annual revenue exceeding $500 million. The individual companies' respective revenues over the preceding 12 months were $298 million for Redwire and $222 million for Edge Autonomy. Both companies share a common investor, AE Industrial Partners, which founded Redwire in 2020.
Cannito projects that approximately half of the combined entity's revenue will stem from U.S. and international defense contracts, with the remaining portion sourced from commercial and civil space projects. He cited promising international growth prospects, especially in Europe, where Edge Autonomy has achieved considerable success. However, he acknowledged the inherent uncertainties surrounding the ongoing conflict in Ukraine and its potential impact on projections for 2025. The acquisition aligns with Redwire's prior plans to bolster its defense offerings, following the establishment of a national security facility in Chantilly, Virginia, last year.
Edge Autonomy, founded in San Luis Obispo, California, employs over 600 people and maintains operations across six locations in the U.S., Canada, and Europe. Its “Penguin” UAS has been included in recent U.S. military aid packages to Ukraine. The company's drone technology incorporates edge computing and AI, enabling real-time data processing, autonomous navigation, and collaborative swarm capabilities. Experts attribute these features to faster decision-making and enhanced battlefield awareness.
A key aspect of this merger is the synergy between Edge Autonomy’s tactical drones and Redwire’s “orbital drones,” designed for very low earth orbit. The goal is a unified network of autonomous platforms spanning from ground to space. “As space and airborne platforms converge into an integrated network of autonomous, collaborative systems, Redwire will be poised to provide end-to-end solutions for multi-domain operations,” Cannito stated.