Leonardo DRS has entered into a definitive agreement to acquire Raft LLC in an all-cash transaction valued at $450 million. Raft, founded in 2018 and headquartered in McLean, Virginia, provides open-architecture mission software specializing in multi-domain data fusion and artificial intelligence for national security customers.
Raft’s technology fuses disparate data into a common operating picture, reducing the cognitive burden on operators across domains and mission threads. The acquisition is expected to be accretive to Adjusted Diluted Earnings Per Share in the first full year of ownership. DRS expects to realize a tax benefit over the next 15 years with a present value of approximately $50 million.
The transaction is subject to regulatory approvals and is expected to close in the fourth quarter of 2026. Morgan Stanley & Co. LLC is serving as financial advisor to Leonardo DRS, and J.P. Morgan Securities LLC is serving as exclusive financial advisor to Raft.
KEY QUOTES:
“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. 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.”
John Baylouny, President and CEO, Leonardo DRS
“Joining DRS is a natural next step for our team and our mission. Our open-architecture platform was built to integrate across systems, not lock customers in, and pairing it with DRS’s sensing and computing franchises will accelerate our ability to deliver mission capability at a global scale.”
Shubhi Mishra, Founder and CEO, Raft
