- The all-cash transaction, valued at $450 million, is expected to close in the fourth quarter of 2026 pending regulatory approval
- Raft’s technology uses AI and open-architecture software to fuse data from multiple sources and support real-time decision-making
- The acquisition strengthens Leonardo DRS’ push into software-driven mission capabilities alongside its sensing and computing portfolio
Leonardo DRS has agreed to acquire Raft in an all-cash deal worth $450 million, expanding its portfolio of mission software, artificial intelligence and data integration technologies, the company announced Tuesday.
What Does Raft Bring to Leonardo DRS?
Raft’s offerings center on open-architecture mission software that uses AI to fuse data from multiple domains, providing real-time situational awareness and enabling quicker operational decisions.
John Baylouny, president and CEO of Leonardo DRS, said the acquisition builds on the company’s organic investments in integrated hardware, software, data and autonomy capabilities while expanding its offerings for defense and national security customers.
“Raft adds proven software talent and open-architecture technology that complement our existing sensing and computing capabilities,” Baylouny said.
Leonardo DRS said defense organizations must process growing volumes of information generated by sensors and connected systems, while disconnected data environments can hinder timely decision-making. The company said Raft’s software integrates information from multiple sources into a shared operational view, helping operators manage activities spanning several domains and mission areas.
What Are the Transaction Details?
The deal is set to close in the fourth quarter of 2026, pending regulatory approvals and customary closing conditions. Leonardo DRS anticipates a roughly $50 million tax benefit spread over 15 years, and expects the acquisition to boost adjusted diluted earnings per share in its first full year. Financial advisers include Morgan Stanley & Co. for Leonardo DRS and J.P. Morgan Securities for Raft.
The acquisition extends Leonardo DRS’ push beyond traditional sensing and hardware into software-driven mission capabilities, following its 2022 merger with radar provider RADA Electronic Industries that broadened its sensing and force-protection portfolio. It also builds on Leonardo DRS’ recent investments in AI-enabled computing, including its Artificial Intelligence Processor designed to support sensor fusion and battlefield decision-making.
