Space infrastructure developer Redwire announced yesterday the acquisition of Edge Autonomy, a renowned drone provider, in a transaction valued at $925 million. This strategic move is set to bolster Redwire’s portfolio by integrating Edge Autonomy’s expertise in autonomous airborne platforms with its existing space infrastructure capabilities.
Peter Cannito, chairman and CEO of Redwire, expressed his enthusiasm for the merger, highlighting the significance of uniting two prominent leaders in the defense technology sector. According to Cannito, as space and airborne platforms increasingly converge into interconnected autonomous systems, Redwire is positioned well to deliver comprehensive solutions for multi-domain operations that span from Earth to outer space. "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," Cannito stated.
Redwire, founded in 2020 and based in Jacksonville, Florida, has quickly established itself as a formidable player in space technology. The company offers a broad range of services, including avionics, sensors, power systems, and microgravity payloads. Its recent projects include the development of the Thresher and Mako space platforms, designed for AI-enabled autonomous operations across various Earth orbits. Additionally, Redwire is pioneering new "orbital drones" intended for very low Earth orbit.
The acquisition of Edge Autonomy brings a sophisticated suite of uncrewed aerial systems (UAS) into Redwire’s offerings. Edge Autonomy, formed from a merger between UAV Factory and Jennings Aeronautics in 2021, has carved out a substantial niche with its long-endurance, long-range drones, notably the Stalker and Penguin series. The company boasts a strong track record of collaboration with the U.S. Department of Defense and allied nations, supplying advanced systems adapted to defense requirements.
Steve Adlich, CEO of Edge Autonomy, emphasized the strategic alignment of both companies in advancing multi-domain technology solutions. "We are extremely excited to join forces with Redwire and merge two industry leaders in advanced multi-domain technologies," said Adlich. He believes that the collaboration will foster innovation and growth, delivering tangible benefits to both companies’ operations and their clientele.
The terms of the deal stipulate that Redwire will acquire Edge Autonomy on a debt-free, cash-free basis, with customary financial adjustments. Redwire plans to fund the acquisition with $150 million in cash and $775 million in common stock, contingent upon its average trading price on the NYSE. Post-acquisition, Edge Autonomy will operate as a wholly owned subsidiary within the Redwire corporate structure.
Financially, the merger promises to be advantageous for Redwire. Edge Autonomy reported revenues of $222 million and adjusted EBITDA of $72 million from September 2023 to September 2024. As a combined entity, Redwire forecasts full-year revenues of $535 million by the end of 2025, indicating a robust growth trajectory fueled by the newly expanded capabilities.
Operating from San Luis Obispo, California, Edge Autonomy employs over 600 personnel globally and commands over 265,000 square feet of manufacturing space across the U.S. and Europe. This substantial infrastructure will now support Redwire’s mission to deliver integrated space and defense solutions that cater to real-world mission demands.
As Redwire and Edge Autonomy move forward with their integration, the expanded capabilities will position them as a pioneering force in the confluence of space and airborne technological advancements—a testament to the evolving nature of defense and aerospace industries.
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