Defence technology provider Leonardo DRS and Israel-based RADA Electronic Industries have completed an all-stock merger to form a combined public entity.

The announcement comes five months after the two companies entered a definitive agreement to merge and form a new combined company.

According to the agreement, RADA’s shareholders will have a 19.5% ownership stake in the new company while Leonardo, the parent company of Leonardo DRS, will own the remaining 80.5%.

Leonardo DRS stated that its stocks will be listed as ‘DRS’ on NASDAQ and the Tel Aviv Stock Exchange (TASE).

RADA’s current stock symbol will be converted into Leonardo DRS’ symbol and will come into effect from 29 November, at the opening of NASDAQ trading, and on 30 November on TASE trading.

RADA CEO Dov Sella said: “We are pleased to have received strong shareholder support for this transaction.

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“It has always been our goal to maximise shareholder value, and the RADA team and board believe this merger represents an excellent outcome for the company.

“The RADA team looks forward to continuing to penetrate the tactical radar market within the strong Leonardo DRS platform.”

The newly formed company will be aligned with some of the fast-growing segments of the US Department of Defense (DoD), with expertise in electric power and propulsion, advanced sensing, force protection, and network computing.

The combined entity’s revenue was $2.7bn and its adjusted EBITDA was $305m in 2021.

Leonardo DRS chairman and CEO William Lynn III said: “We look forward to bringing Leonardo DRS’s mid-tier strength to the public markets, with the addition of RADA’s leading tactical radar capabilities.”

Evercore and S. Friedman & Co and DLA Piper (US) served as the exclusive financial adviser and legal advisers, respectively, to RADA.

JP Morgan Securities and Sullivan & Cromwell and Herzog Fox & Neeman served as exclusive financial adviser and legal advisers, respectively, to Leonardo DRS.