Leonardo DRS to Acquire Raft for $450M, Expanding AI and Mission Software Capabilities
DRS sits 50% above its 52-week low of $32.43 on light trading volume (0.1× avg).
Summary
Leonardo DRS announced a definitive agreement to acquire Raft LLC for $450 million in cash, adding open-architecture AI and data fusion software to its defense portfolio. The deal is expected to close in Q4 2026 and be immediately accretive to adjusted earnings.
Key Events · M&A and Partnerships · DRS
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$450M All-Cash Acquisition of Raft
A definitive agreement has been signed to acquire Raft LLC, a provider of open-architecture mission software specializing in multi-domain data fusion and AI, for $450 million in cash.
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Strategic Expansion into AI and Software
Raft's technology complements DRS's existing sensing and computing portfolio, enhancing its ability to deliver integrated, AI-enabled mission solutions for national security customers.
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Accretive to Earnings with Tax Benefit
The transaction is expected to be accretive to Adjusted Diluted EPS in the first full year of ownership and generate a tax benefit with a present value of approximately $50 million over 15 years.
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Funding via Cash and Revolver
Funding for the acquisition will come from cash on hand and borrowings under the revolving credit facility, avoiding immediate equity dilution.
Analysis · DRS · Manufacturing
The $450 million all-cash acquisition of Raft LLC directly expands Leonardo DRS's multi-domain AI, data fusion, and mission software capabilities. The deal is expected to be accretive to adjusted earnings in the first full year and brings a $50 million present-value tax benefit. Funding comes from cash on hand and revolver borrowings, preserving balance sheet flexibility. This follows a strong Q1 earnings beat and a major thermal camera contract win, reinforcing DRS's growth trajectory in defense technology.
How filings like this one have moved
In the 30 days to Nov 2, 2026, 40.4% of the 1069 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.35%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, DRS was trading at $48.54 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $12.9B. The 52-week trading range was $32.43 to $50.59. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.