Leonardo DRS, the U.S. subsidiary of Italy’s Leonardo listed on Nasdaq, has signed a definitive agreement to acquire defense software company Raft for approximately $450 million in cash, expanding its capabilities in artificial intelligence and open-architecture software.
Why it matters: The deal expands Leonardo DRS’ capabilities in AI-enabled mission software.
- Raft adds expertise in open-architecture software and multidomain data fusion.
- Leonardo frames the acquisition as part of its broader growth strategy and a way to strengthen support for customers operating in complex environments.
Zoom in: The deal. Leonardo DRS, 71.38% owned by Leonardo, said the acquisition will enhance its ability to deliver integrated mission solutions by combining its existing technologies with Raft’s software capabilities.
- Founded in 2018, Raft develops open-architecture software for mission applications, specializing in multidomain data fusion and artificial intelligence designed to accelerate real-time operational decision-making.
- According to Leonardo, these capabilities are highly complementary to Leonardo DRS’ current technology portfolio.
What they’re saying. “The acquisition is aligned with the development strategy of Leonardo and Leonardo DRS,” Leonardo CEO and General Manager Lorenzo Mariani said.
- He added that the transaction will strengthen Leonardo DRS’ ability to provide technologies that help customers operate “with greater speed, clarity and security in complex operational environments,” describing Raft’s expertise in open-architecture software, AI and data integration as highly complementary to the company’s existing capabilities.
Follow the money. The acquisition is valued at approximately $450 million and will be financed through available cash and borrowings under Leonardo DRS’ revolving credit facility.
What we’re watching: The transaction remains subject to approval by the relevant authorities and other customary closing conditions. Completion is expected in the fourth quarter of 2026.
The bottom line The acquisition underscores Leonardo DRS’ focus on expanding its software and AI capabilities for mission applications, while reinforcing the company’s technology portfolio through the addition of Raft’s expertise in open architecture and multidomain data integration.
