Intel stock extends gains after report of possible U.S. government stake
SAN FRANCISCO - Redwire Corporation (NYSE: RDW), with a current market capitalization of $2.38 billion and a stock price that has surged over 170% in the past year, has acquired Edge Autonomy, a provider of autonomous systems and resilient energy solutions to defense and government agencies, in a transaction valued at over $1.14 billion based on Redwire’s June 12 closing stock price of $19.32.
Edge Autonomy supplies UAV system technology to the U.S. Department of Defense, U.S. Federal Civilian Agencies, and allied governments globally, according to a press release statement from Sleeping Bear Capital (SBC), which held a minority stake in the company. According to InvestingPro data, Redwire is expected to see significant sales growth this year, with analysts projecting profitability improvements.
SBC, a middle market-focused independent sponsor, previously sold its portfolio company Adaptive Energy to Edge Autonomy in 2022 while maintaining a board seat and minority equity position. The investment firm had originally acquired Adaptive Energy in 2018 by spinning out the fuel cell technology business from Ultra Electronics Holdings.
"When we first invested in Adaptive Energy, we saw a best-in-class power solution for the most demanding defense and aerospace environments," said Ranvir Gujral, Managing Partner of Sleeping Bear Capital, in the statement. Want deeper insights? InvestingPro offers 12 additional exclusive tips and a comprehensive analysis of Redwire’s financial health and growth potential in its Pro Research Report.
The transaction represents SBC’s first billion-dollar exit since its founding in 2018. The private equity sponsor has completed over 30 investments ranging from angel and pre-seed investments to control transactions.
In other recent news, Redwire Corporation announced the completion of its acquisition of Edge Autonomy Intermediate Holdings, LLC. This strategic move is expected to immediately enhance Redwire’s revenue, Adjusted EBITDA, and Free Cash Flow, with the combined entity projecting full-year 2025 revenues between $535 million and $605 million. Additionally, Redwire has launched an upsized public offering of 15,525,000 shares of common stock at $16.75 per share, aiming to raise approximately $260 million in gross proceeds. The proceeds are intended for general corporate purposes, including repurchasing a portion of its convertible preferred stock and repaying a seller note related to the Edge Autonomy acquisition.
The offering, managed by firms such as J.P. Morgan and Morgan Stanley, is expected to close in mid-June 2025. In a related development, Redwire secured a $90 million term loan to support its acquisition strategy and general corporate needs. The acquisition of Edge Autonomy, valued at $925 million, was approved by shareholders and is considered a pivotal expansion in the aerospace and defense sector. Redwire’s recent activities, including the public offering and acquisition, indicate a significant phase of growth and consolidation for the company.
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