AE Industrial Partners-backed Redwire has agreed to acquire Edge Autonomy in a cash-and-stock transaction valued at approximately $925 million as part of a push to establish a multidomain space and defense technology company.
The space infrastructure company said Monday it expects the acquisition to close in the second quarter of 2025, subject to Redwire stockholders’ approval, regulatory clearances and other customary closing conditions.
The transaction is expected to expand Redwire’s portfolio of mission-critical space platforms, including combat-proven autonomous airborne systems.
“The combination of Redwire and Edge Autonomy creates a uniquely positioned space and defense company focused on two of the fastest growing trends in defense technology,” said Peter Cannito, chairman and CEO of Redwire. “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 from the surface of the earth to the surface of the moon and beyond.”
What Does Edge Autonomy Do?
The company was established in 2021 through the merger of UAV Factory and Jennings Aeronautics.
Edge Autonomy provides uncrewed airborne systems, autonomous technologies, advanced optics and resilient energy platforms for the Department of Defense, U.S. federal civilian agencies, allied governments, academic institutions and commercial entities worldwide.
The San Luis Obispo, California-based company has more than 600 employees and over 265,000 square feet of manufacturing capabilities in the U.S. and European Union.
The company’s UAS platforms, including its Penguin and Stalker series, are designed to support long-range reconnaissance missions and can be fielded for time-critical operations.
For the last 12 months ended Sept. 30, Edge Autonomy recorded $222 million in revenues and $72 million in adjusted EBITDA.
Transaction Terms
Redwire will fund the acquisition using $150 million in cash and $775 million in shares of its common stock.
Upon the deal’s closing, Redwire will sign an amended investor rights agreement with AEI, Genesis Park, Edge Autonomy and other affiliates. The agreement would allow AEI to designate four directors for election to Redwire’s board. Edge Autonomy would be permitted to elect one director.
J.P. Morgan Securities and GH Partners are Redwire’s financial advisers in the transaction. Holland & Knight advises Redwire on the deal’s legal aspect.
Roth Capital Partners and Richards, Layton & Finger are serving as financial adviser and legal counsel, respectively, to a special committee of the board.
Citi acts as Edge Autonomy’s financial adviser. Kirkland & Ellis serves as legal adviser to the UAS provider.