MILAN (Reuters) -Leonardo’s U.S. electronics business DRS has agreed an all-stock takeover of Israel’s RADA Electronic Industries, the Italian defence group said on Tuesday.
Under the agreement, DRS will acquire 100% of the Israeli maker of tactical radar equipment, with current RADA shareholders then taking a 19.5% stake in the combined business.
At the closing of the transaction, expected in the fourth quarter of this year, DRS will be listed on the Nasdaq and Tel Aviv stock exchanges, Leonardo added without providing financial details of the deal.
Leonardo postponed an initial public offering (IPO) of a minority stake in DRS last year, citing uncertainty over U.S. defence spending and investor concern about rising interest rates.
(Reporting by Gianluca SemeraroEditing by Federico Maccioni and David Goodman)
