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JACKSONVILLE, Fla. - Redwire Corporation (NYSE:RDW), a significant player in the space infrastructure sector with a market capitalization of $1.42 billion and an impressive 251% return over the past year, has updated its merger agreement to acquire Edge Autonomy, a prominent uncrewed airborne system technology provider. According to InvestingPro data, the company’s stock currently trades at $18.45, near its Fair Value, with analysts setting price targets between $19 and $28. According to the amended terms, Redwire will purchase Edge Autonomy for $925 million, with the compensation comprising $160 million in cash and $765 million in Redwire common stock.
The cash component will include a $100 million unsecured promissory note with interest rates between 15% and 18%. Additionally, Redwire has secured commitments for at least $90 million in debt financing from financial institutions including TCBI Securities, JPMorgan Chase Bank, Bank of America, and Truist Bank, as per the commitment letter dated May 23, 2025. InvestingPro analysis shows the company currently operates with a moderate debt level, maintaining a total debt-to-capital ratio of 0.09 and a current ratio of 1.2.
In preparation for the acquisition, Redwire has also negotiated amendments to its existing credit facilities, extending the maturity date and adjusting interest rates to match those of new debt agreements post-transaction. The equity interests of Edge Autonomy will be collateralized with a second lien in favor of Adams Street Credit Advisors LP.
The acquisition awaits approval from Redwire’s stockholders, with a special meeting adjourned to June 13, 2025, to allow additional review time. The company’s board, along with a special committee of independent directors, has endorsed the transaction, and entities affiliated with AE Industrial Partners, Genesis Park, and Bain Capital have pledged support, representing approximately 69.2% of Redwire’s voting power.
The transaction details, including the amended merger agreement and financing information, will be disclosed in a Form 8-K filing with the SEC.
This strategic move is anticipated to enhance Redwire’s portfolio of space infrastructure solutions. Redwire, known for its avionics, sensors, power solutions, and other space technology offerings, employs around 750 people across the United States and Europe. InvestingPro data reveals the company’s overall financial health score is FAIR, with analysts expecting sales growth and profitability in the current year. For deeper insights into Redwire’s financial metrics and growth potential, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
Financial advisory roles for the transaction are filled by J.P. Morgan Securities LLC and GH Partners LLC for Redwire, and Roth Capital Partners for the special committee of the board. Edge Autonomy is advised by Citi and William Blair, with legal counsel from Kirkland & Ellis LLP.
The information presented in this article is based on a press release statement.
In other recent news, Redwire Corporation has made significant strides in various space-related projects. The company announced the successful completion of the Critical Design Review for its Mason technology, a suite aimed at constructing infrastructure on the Moon and Mars. This development, part of a $12.9 million NASA project, moves Mason closer to deployment, highlighting its potential to transform lunar and Martian regolith into a concrete-like material. Additionally, Redwire has secured a contract to support Aspera Biomedicines in space-based cancer research, utilizing its Pharmaceutical In-space Laboratory technology to advance the development of rebecsinib, a promising cancer therapy.
Redwire also delivered the onboard computer for the European Space Agency’s Comet Interceptor mission, marking a pivotal achievement for the company. This onboard computer will manage spacecraft components and data transmission, reinforcing Redwire’s role in high-profile space missions. Furthermore, Redwire has been awarded a contract to provide avionics technology for ESA’s Next Generation Gravity Mission satellites, which will monitor Earth’s gravitational changes to enhance water management and environmental monitoring.
These recent developments demonstrate Redwire’s continued involvement in critical space infrastructure projects. The company’s collaboration with NASA, ESA, and other partners underscores its commitment to advancing space exploration and innovation. Investors have shown confidence in Redwire’s capabilities, reflecting the company’s strong reputation in the space industry.
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