Redwire Acquires Edge Autonomy, Creating a Scaled Space and Defense Tech Leader
Redwire Corporation, a leading innovator in space infrastructure for the next-generation space economy, has announced its definitive agreement to acquire Edge Autonomy, a provider of field-proven uncrewed airborne systems (UAS) technology. The acquisition, valued at $925 million, marks a significant step in Redwire’s evolution as a leader in space and defense technology. The deal comprises $150 million in cash and $775 million in Redwire common stock, based on a 30-day volume-weighted average price (VWAP) of $15.07. Upon completion, Edge Autonomy will become a wholly-owned subsidiary of Redwire.
Strategic Significance
The acquisition positions Redwire as a global leader in multi-domain autonomous technology. By integrating Edge Autonomy’s capabilities, Redwire will broaden its portfolio to include combat-proven autonomous airborne platforms. The merger is expected to enhance Redwire’s financial performance immediately, contributing to revenue, Adjusted EBITDA, and Free Cash Flow. For 2025, the combined entity is forecasting revenues between $535 million and $605 million, Adjusted EBITDA of $70 million to $105 million, and positive Free Cash Flow.
Edge Autonomy brings over three decades of expertise in uncrewed and autonomous technology systems. Formed in 2021 through the merger of UAV Factory and Jennings Aeronautics, Edge Autonomy has established itself as a trusted partner to the U.S. Department of Defense, Special Operations Forces, and allied governments. Its flagship UAS platforms, such as the Stalker and Penguin series, are designed for long-endurance, long-range reconnaissance missions. These systems provide crucial data for decision-making in time-sensitive operations.
A Transformative Partnership
The Redwire-Edge Autonomy merger represents the convergence of space and airborne technologies. Redwire has recently expanded its national security space offerings with the introduction of Thresher and Mako platforms, which are designed for software-defined, AI-enabled autonomous operations in various Earth orbits. The addition of Edge Autonomy’s UAS technologies will enable Redwire to offer integrated solutions that span multiple domains, from terrestrial to extraterrestrial operations.
“This acquisition 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, Redwire will provide end-to-end solutions for multi-domain operations, from Earth to the Moon and beyond.”
Financial and Operational Impact
Edge Autonomy’s recent performance underscores its value to Redwire. For the 12 months ending September 30, 2024, Edge Autonomy generated $222 million in revenue and $72 million in Adjusted EBITDA. Its vertically integrated operations include over 265,000 square feet of manufacturing space across the U.S. and Europe, supported by a team of more than 600 employees. This infrastructure will complement Redwire’s existing capabilities, enabling the combined company to scale efficiently.
Steve Adlich, CEO of Edge Autonomy, expressed enthusiasm for the merger: “Both companies share a commitment to innovation, reliability, and customer satisfaction. We see significant synergies that will drive growth and enhance our ability to meet mission-critical needs.”
Transaction Details
The $925 million acquisition will be financed through a combination of cash and stock. Redwire may utilize its balance sheet cash, existing credit facilities, or new debt financing to fund the cash portion. Additionally, the company may issue new equity, adjusting the $15.07 per-share issuance price as needed. The transaction is subject to customary closing conditions, including regulatory approvals and a stockholder vote. It is expected to close in the second quarter of 2025.
Redwire’s Board of Directors and a special independent committee have approved the deal. Key stakeholders, including affiliates of AE Industrial Partners, Genesis Park, and Bain Capital, have agreed to support the transaction. Collectively, these entities represent approximately 73% of Redwire’s voting power.
Upon closing, Redwire will enter into an amended Investor Rights Agreement with AEI, Genesis Park, and the Seller. The agreement includes provisions for director appointments and restrictions on stock sales for six months following the transaction.
Enhanced Governance and Leadership
The combined entity will benefit from a diversified leadership structure. AEI will designate four directors to Redwire’s Board, while the Seller will appoint one director, contingent on maintaining at least 25% of its initial ownership stake. This governance framework aims to ensure strategic alignment and effective oversight as Redwire navigates its expanded operational landscape.
Broader Implications for the Industry
The Redwire-Edge Autonomy merger reflects broader trends in defense and aerospace technology. The integration of AI-enabled autonomous systems across multiple domains aligns with the growing demand for rapid, data-driven decision-making in national security. By bridging the gap between airborne and space-based systems, the combined company is poised to deliver innovative solutions for complex challenges.
Edge Autonomy’s field-proven platforms, combined with Redwire’s advanced space technologies, create a robust foundation for addressing critical defense and exploration needs. The merger underscores the strategic importance of multi-domain operations in maintaining technological and operational superiority.
The acquisition marks a pivotal moment for Redwire as it expands its footprint in the defense and aerospace sectors. The integration of Edge Autonomy’s capabilities is expected to drive innovation, enhance operational efficiency, and deliver value to stakeholders.
“This transformative transaction strengthens our ability to deliver mission-critical solutions,” said Cannito. “Together, we will redefine the boundaries of what is possible in space and defense technology.”
Redwire’s management team will host a conference call on January 21, 2025, at 9:00 a.m. ET to discuss the transaction. The live stream will include a presentation with slides, accessible via the company’s investor relations website. A replay of the call will be available for two weeks.
Advisors
J.P. Morgan Securities LLC and GH Partners LLC are serving as financial advisors to Redwire, with Holland & Knight LLP providing legal counsel. Roth Capital Partners and Citi are advising Edge Autonomy, with Kirkland & Ellis LLP serving as legal advisors.
The Redwire-Edge Autonomy merger signals a new era for multi-domain operations, blending cutting-edge space and airborne technologies to meet the evolving demands of modern defense and exploration.
