WASHINGTON -- Redwire announced a deal to acquire drone maker Edge Autonomy for $925 million, transforming the space infrastructure company into a significant player in defense technology.
Jacksonville, Florida-based Redwire revealed on January 20 that it will pay $150 million in cash and $775 million in stock for Edge Autonomy, a manufacturer of military uncrewed aircraft systems, whose technology has been deployed with Ukrainian forces against Russia.
The acquisition signifies Redwire's strategic pivot into the defense technology sector, emphasizing the growing focus on autonomous warfare capabilities.
The deal is expected to close in the second quarter of 2025, pending shareholder and regulatory approvals. Once finalized, Edge Autonomy and its subsidiaries will operate as wholly-owned entities under Redwire.
Peter Cannito, Redwire's chairman and CEO, underscored the strategic importance of the merger during a call with analysts on January 21. He noted that this acquisition positions Redwire to capitalize on the burgeoning defense market, particularly in autonomous warfare driven by drones and artificial intelligence.
By merging Redwire's expertise in low-earth orbit (LEO) satellites with Edge Autonomy's advanced drone technology, the company aims to create integrated command-and-control networks for military operators. Cannito emphasized the potential for multi-domain operations, bridging airborne and space-based systems.
Founded in 2020 by AE Industrial Partners, Redwire has pursued an aggressive acquisition strategy in the space and tech sectors. This deal stands out due to its size and strategic expansion into defense, with the combined company projected to generate over $500 million in annual sales.
Cannito anticipates that approximately 50% of the merged entity's revenue will derive from U.S. and international defense contracts, with the remainder from commercial and civil space ventures.
Edge Autonomy, based in California, employs over 600 people and operates across six locations in the U.S., Canada, and Europe. Its drone technology incorporates edge computing and AI, enabling real-time data processing and autonomous navigation.
A central focus of the merger is the synergy between Edge Autonomy's tactical drones and Redwire's low-flying satellites, designed for very low earth orbit. These systems aim to create a seamless network of autonomous platforms, enhancing operational capabilities.
As Cannito stated, "As space and airborne platforms converge into an integrated network of autonomous, collaborative systems, Redwire will be poised to provide end-to-end solutions for multi-domain operations."