Redwire Expands into Defense Tech Sector

By Bobby Samwell • Monday, January 27 10:30 • Permanent Link

Redwire Corporation has recently made headlines with its acquisition of aerial drone maker Edge Autonomy for $925 million in cash and stock. This move marks a significant expansion for Redwire into the defense tech sector, complementing its existing national security work in space.

The acquisition is expected to bolster Redwire's top-line and EBITDA growth and lead the company to become cash flow positive. This development comes amid a period of significant growth for Redwire, with its shares rising by almost 640% over the past twelve months.

Redwire's CEO, Pete Cannito, emphasized the company's focus on becoming a multi-domain company, integrating both space and autonomous airborne platforms. This strategic shift aligns with the company's goal of building a system-of-systems where autonomous spacecraft collaborate with autonomous airborne platforms to realize an all-domain warfighting concept.

The company's expansion into the defense tech sector is seen as a significant move, enhancing its position as a highly agile middle-market company. This development is expected to appeal to customers and position Redwire uniquely in the market.

The acquisition of Edge Autonomy is also anticipated to provide Redwire with extended endurance and range capabilities, positioning the company to compete for missions that were previously reserved for more advanced and expensive technologies.

Furthermore, Redwire's CEO highlighted the company's broader portfolio, which includes biotech business involving the growth of crystals for medicine and drug development in space, space manufacturing, and satellite-related ventures. The company's growth principles revolve around protecting the core, scaling production, moving up the value chain, and venture optionality.

Redwire's public status and engagement with investors have been positively influenced by the increasing public awareness of space activities, with CEO Pete Cannito acknowledging the impact of figures like Elon Musk. There is a notable enthusiasm for space companies and defense tech, and Redwire sees itself as entering the next golden age of space, irrespective of the administration.

Today the company's shares have moved 7.7% to a price of $22.86. For the full picture, make sure to review Redwire's 8-K report.

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