U.S.-based Redwire Corporation (RDW) announced an agreement to buy Edge Autonomy, a provider of autonomous systems to U.S. agencies, for $925 million. The deal value includes $150 million in cash and $775 million in Redwire common stock. Meanwhile, the deal is expected to increase Redwire’s revenue, core profit, and free cash flow immediately.
Redwire to Strengthen Space Sector with Edge Autonomy
With this acquisition, Redwire aims to strengthen its space sector with Edge’s combat-tested uncrewed airborne system (UAS) technology. Notably, Edge’s UAS technology is built for long-lasting, long-distance missions and can be quickly used for urgent tasks. Additionally, the acquisition is expected to enhance Redwire’s position in autonomous technology across multiple domains.
Redwire is already developing spacecraft known as Very Low Earth Orbit (VLEO) or “orbital drones,” which connect airborne and space systems. By adding Edge Autonomy’s UAS technologies, Redwire will enhance its capabilities and offer customers new integrated solutions, combining space and airborne operations.
Redwire Reveals Financial Details
The company expects that the merged entity will generate between $535 million and $605 million in revenue for the year ending December 31, 2025, along with adjusted earnings ranging from $70 million to $105 million.
For the first nine months of 2024, the company revenues increased by 30.1% year-over-year to $234.5 million. For the full year, Redwire confirms its revenue forecast of $310 million, marking a 27% growth over the previous year.
The transaction is pending customary approvals, including a Redwire stockholder vote and regulatory clearances, and is expected to close in Q2 2025.
Is Redwire a Good Stock to Buy?
On Wall Street, analysts remain highly optimistic about RDW stock. TipRanks consensus gives it a Strong Buy rating, based on four Buy and one Hold recommendations. The Redwire share price target of $16.10 suggests a 9.15% upside from current levels.
So far this year, RDW stock has dropped by more than 10%.