Leonardo DRS acquires Raft for $450M

Leonardo (company), the U.S. subsidiary of Italy's Leonardo (company), announced on July 28, 2026, that it has entered into a definitive agreement to acquire Raft LLC, a Virginia-based defense software company, in an all-cash transaction valued at $450 million. Raft specializes in open-architecture mission software, multi-domain data fusion, and artificial intelligence, which enhance real-time situational awareness and accelerate operational decision-making for national security customers. The acquisition is expected to close in the fourth quarter of 2026, subject to regulatory approvals and customary closing conditions. Leonardo (company) plans to finance the deal through available cash and borrowings under its revolving credit facility. The company anticipates a roughly $50 million tax benefit spread over 15 years and expects the acquisition to boost adjusted diluted earnings per share in its first full year. Financial advisers include Morgan Stanley for Leonardo (company) and J.P. Morgan Securities for Raft. Raft has existing relationships with the U.S. military, including work with the U.S. Air Force and U.S. Army, and is part of a Lockheed Martin-led consortium for the Army's Next Generation Command and Control. The acquisition strengthens Leonardo (company)' portfolio in mission software, AI, and data integration, complementing its existing sensing and computing capabilities.