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Get filing alertsLeonardo DRS to acquire AI defense software firm Raft for $450M cash
Filed July 28, 2026 · Period ending July 28, 2026 · ~1 min read
Key Changes
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DRS signed definitive agreement to acquire Raft LLC for $450M cash, adding AI-powered multi-domain data fusion software capabilities to its defense technology portfolio. Deal expected to close Q4 2026.
Exhibit 99.1 view on EDGAR → -
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Transaction will be funded through cash on hand and revolving credit facility borrowings. DRS expects $50M present-value tax benefit over 15 years and projects acquisition will be accretive to adjusted EPS in first full year.
Exhibit 99.1 view on EDGAR → -
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Raft specializes in open-architecture mission software that fuses data from multiple sources into unified operational picture for defense customers, complementing DRS's existing sensing and computing hardware.
Exhibit 99.1 view on EDGAR → -
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CEO Baylouny stated acquisition addresses growing customer demand for integrated hardware-software solutions and accelerates DRS's evolution toward AI-enabled mission systems.
Exhibit 99.1 view on EDGAR →
Summary
Leonardo DRS announced a definitive agreement to acquire Raft LLC, a McLean-based defense software company, for $450 million in cash. Founded in 2018, Raft provides AI-powered multi-domain data fusion software that helps national security customers integrate data from distributed sensors into a unified operational picture for faster decision-making.
The acquisition expands DRS's capabilities beyond its traditional hardware focus into mission-critical software and artificial intelligence. DRS will fund the purchase using cash on hand and borrowings under its revolving credit facility. The company expects a $50 million present-value tax benefit over 15 years and projects the deal will be accretive to adjusted earnings per share in the first full year of ownership.
The transaction is subject to regulatory approvals and expected to close in the fourth quarter of 2026. For DRS shareholders, the acquisition represents a strategic shift toward integrated hardware-software solutions that CEO John Baylouny says customers increasingly demand. Raft's open-architecture technology and software talent complement DRS's existing sensing and computing capabilities, positioning the company to deliver more complete AI-enabled mission systems. The deal's accretive earnings profile and tax benefits support the financial case, though execution risk remains until closing and integration milestones are met.
Section-by-Section Diff
Event · Item 8.01 — Other Events
Leonardo DRS announced a definitive agreement to acquire Raft LLC.
Added in current filing · verify on EDGAR →
Leonardo DRS, Inc. issued a press release announcing its entry into a definitive agreement to acquire Raft LLC.
Leonardo DRS has entered into a definitive agreement to acquire Raft LLC. The filing does not disclose transaction terms, purchase price, expected closing date, or strategic rationale for the acquisition.
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
Leonardo DRS, Inc. (Nasdaq: DRS) today announced that it has entered into a definitive agreement to acquire Raft LLC (“Raft”) in an all-cash transaction valued at $450 million. Founded in 2018 and headquartered in McLean, Virginia, Raft provides open-architecture mission software, specializing in multi-domain data fusion and artificial intelligence (AI) that supports real-time situational awareness and faster operational decision-making for national security customers.
DRS has signed a definitive agreement to acquire Raft, a McLean-based defense software company, for $450 million in cash. Raft specializes in AI-powered data fusion software that helps defense customers integrate data from multiple sources into a unified operational picture. The acquisition expands DRS's capabilities beyond hardware into mission-critical software and AI.
Added in current filing · view on EDGAR →
“Our customers increasingly require integrated hardware, software, data and autonomy to support mission outcomes. The acquisition of Raft will build on and accelerate the organic investment that DRS has made in that evolution,” said John Baylouny, President and Chief Executive Officer of Leonardo DRS. “Raft adds proven software talent and open-architecture technology that complement our existing sensing and computing capabilities and strengthen our ability to deliver AI-enabled mission solutions at the speed our customers demand.”
CEO John Baylouny stated the acquisition addresses growing customer demand for integrated hardware-software solutions. Raft's open-architecture software and AI capabilities complement DRS's existing sensing and computing hardware, enabling the company to deliver more complete mission solutions that fuse data from distributed sensors into actionable intelligence for defense customers.
Show 1 minor / wording change
Added in current filing · view on EDGAR →
Leonardo DRS will discuss the acquisition in conjunction with its previously announced second quarter 2026 earnings conference call on Thursday, July 30, 2026, beginning at 10:00 a.m. (ET).
DRS will discuss the Raft acquisition during its Q2 2026 earnings call scheduled for July 30, 2026 at 10:00 a.m. ET. Investors can access the call through the company's investor relations website.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 29, 2026 · How we verify