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Tag: Leonardo DRS Inc.

Leonardo DRS to sell satellite business for $450M

Arlington-based Leonardo DRS Inc., a subsidiary of Italian defense contractor Leonardo SpA, has agreed to sell its satellite communications business to SES for $450 million, according to a news release.

The deal is expected to close in the second half of 2022 subject to regulatory approval.

“The DRS GES [Global Enterprise Solutions] business is well-respected by its customers and within the satellite communications provider services market, and we are very pleased with the agreement reached with SES,” said Leonardo DRS CEO Bill Lynn. “While the DRS GES business has flourished, Leonardo DRS has shifted its portfolio focus, and selling it now makes the most business sense.”

The divestiture will allow the Leonardo DRS to consider larger acquisitions to strengthen its core capabilities and open new opportunities while continuing to focus on meeting the Pentagon’s needs, Lynn added.

Once acquired, SES plans to organize DRS GES under Reston-based SES Government Solutions, a wholly-owned subsidiary of the Luxembourg-based SES. For more than 40 years, SES GS has worked with the federal government, including the Department of Defense’s combatant commands.

“SES GS is the only satellite operator with operational experience delivering multi-orbit, multi-band managed SATCOM services to the Department of Defense and its warfighters,” said SES GS President and CEO Pete Hoene “With SES GS and DRS GES’ deep and trusted relationships with U.S. government agencies, we look forward to continuing to provide critical elements to meet the DoD’s connectivity requirements and deliver assured communications.”

 

 

Arlington defense contractor wins $105M Army contract

Arlington-based defense contractor Leonardo DRS Inc., a subsidiary of Italian defense contractor Leonardo SpA, has won a $105 million U.S. Army mission command computing systems delivery order contract, it announced Wednesday.

The military defense company will complete the delivery order for the Mounted Family of Computer Systems II. The MFCoS II is a family of common computing and display systems that consolidates programs and military computing users, according to Leonardo’s statement. The order was awarded to the Leonardo DRS Land Electronics business by the Defense Information Technology Contracting Office of the Defense Information Systems Agency.

Bill Guyan, senior vice president and general manager of Leonardo DRS Land Electronics business, said in the statement: “We are proud that MFOCS continues to play an important role in the Army’s network modernization efforts to bring users the latest in situational awareness on the battlefield. MFOCS is a vital component of the Mission Command suite of integrated capabilities used across the U.S. Army and Marine Corps ground fleets, and our team members have designed and manufactured a powerful, reliable and affordable edge capability that soldiers have come to rely upon.”

Work on this contract will be performed in the Leonardo DRS Land Electronics facility in Melbourne, Florida.

Leonardo DRS is in the third year of an up to 10-year contract supporting requirements for U.S. Army Mounted Mission Command and Mounted Computing Operating Environment, according to the statement.

Leonardo DRS, formerly DRS Technologies Inc., produces electronic defense systems in three divisions: advanced sensor technologies, network computing and communications, and integrated missions systems. The contractor earns about $2 billion in annual revenue and considered going public earlier this year, but its parent company pushed pause on the IPO in March.

Leonardo DRS pushes pause on IPO

Arlington-based Leonardo DRS Inc., a subsidiary of Italian defense contractor Leonardo SpA, is hitting the brakes on its initial public offering, its parent company announced Wednesday. No future IPO date was announced.

The company attributed its decision to “adverse market conditions” that “did not allow an adequate valuation of DRS,” according to a news release. “DRS remains a core part of Leonardo’s business portfolio and the IPO will potentially be revisited when market conditions are more favorable and a successful IPO at an appropriate valuation for this strategic business can be achieved.”

The company added that it has filed a registration statement with the Securities and Exchange Commission but that it has not yet become effective, meaning that the securities cannot be sold until it goes into effect.

Earlier this month, Leonardo announced it would list a minority stake of Leonardo DRS on the New York Stock Exchange, with the IPO valued at $2.54 billion. Leonardo US would remain the majority shareholder of Leonardo DRS, and the company was expected to enter a proxy agreement with the U.S. Department of Defense to allow Leonardo DRS to continue to compete and perform on classified programs.

Leonardo DRS is the largest U.S. subsidiary of the Italian defense/aerospace conglomerate and is a military defense tech contractor with $2 billion in annual revenue. The company works with customers including the U.S. Army, Navy and intelligence community. In 2020, the company won a $120 million U.S. Navy contract to provide engineering design and software testing for aircraft protection systems.

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