Florida’s space technology company Redwire Corp (NYSE: RDW) got a substantial market capitalization boost on Tuesday after revealing that it will acquire the advanced drone systems developer Edge Autonomy. Announcing the US$925-million-dollar deal sent Redwire’s share price up by over 50 per cent on the New York Stock Exchange.
The uncrewed airborne systems (UAS) developed by Edge are no ordinary drones. They are designed for military applications and completing long-range reconnaissance endeavours. Some of these remotely operated small-scale planes are propane fuel cell-powered, providing them with a superior range than other electric models.
The merger will result in an aerospace and aviation tech company that will supply systems to high-profile customers such as the American Department of Defense and the U.S. Marine Forces Special Operations Command.
“The acquisition is expected to transform Redwire into a global leader in multi-domain autonomous technology,” Redwire said in a news release published on Monday, “broadening its portfolio of mission-critical space platforms to include combat-proven autonomous airborne platforms.”
This collaboration will combine the capabilities of a multi-faceted space technology solutions company with a state-of-the-art military-grade drone manufacturer, thereby expanding the scope of potential contracts for Redwire substantially. Edge will be receiving US$150 million in cash and US$775 million in Redwire stock.
Redwire Space is soaring today, up 40% after acquiring Edge Autonomy!
This strategic move (25% cash, 75% equity) will make them a Leader in multi-domain defense tech.$RDW is finally getting the recognition it deserves from the market.
Patience + Conviction Pays 🫡 pic.twitter.com/hd3gbYaQiG
— Space Investor (@SpaceInvestor_D) January 21, 2025
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Redwire reports revenue surge in Q3
At the end of last year’s third quarter, Redwire reported a 30.1 per cent year-over-year rise in revenue for the three months ended Sept. 30 at US$234.5 million.
Future numbers are expected to climb even higher in this regard after the Edge transaction closes by the end of Q2 this year.
Redwire is known to supply solar systems to the International Space Station. Earlier this month, the cosmic tech operator announced that it had supplied its fourth pair of “Roll-Out Solar Array [ROSA] wings” to the orbiting research facility to enhance its energy storage capabilities.
The company has also provided the European Space Agency with advanced satellite technology.
In 2020, Redwire acquired Made in Space — a company that develops 3D printers designed for usage above the Earth’s atmosphere. It enables the production of necessary tools and parts while completing missions at long distances from our planet.
Graphic depicting synchronized technology resulting from the Edge merger. Image credit: Redwire Corp
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