Raft was founded in 2018 and is headquartered in McLean, Virginia. The company develops open-architecture mission software for national-security customers.
Its technology combines data from distributed sensors and systems. The software supports real-time situational awareness and faster operational decisions.
Leonardo DRS said defense customers are handling growing volumes of battlefield data. Fragmented data architectures can slow decisions across complex missions.
Raft’s platform is designed to fuse separate data streams into a common operating picture. It also aims to reduce the cognitive burden on operators.
The acquisition will add those capabilities to Leonardo DRS’s sensing and network computing portfolio. The company plans to combine hardware, software, data and autonomy in integrated mission systems.
“Our customers increasingly require integrated hardware, software, data and autonomy to support mission outcomes. The acquisition of Raft will build on and accelerate the organic investment that DRS has made in that evolution,” said John Baylouny, President and Chief Executive Officer of Leonardo DRS.
“Raft adds proven software talent and open-architecture technology that complement our existing sensing and computing capabilities and strengthen our ability to deliver AI-enabled mission solutions at the speed our customers demand.” Leonardo DRS said the deal supports its broader technology strategy.
Leonardo owns 71.38% of Nasdaq-listed Leonardo DRS. The parent company also sees the acquisition as part of its U.S. expansion.
“The acquisition is aligned with Leonardo and Leonardo DRS’s strategy and enhances Leonardo DRS’s ability to deliver integrated, mission-focused technologies that help customers operate with greater speed, clarity and confidence in complex operational environments,” said Lorenzo Mariani, Leonardo Chief Executive Officer and General Manager.
“Raft’s open-architecture software, AI and data integration capabilities are highly complementary and additive to Leonardo DRS’s existing technology portfolio,” Mariani said. The deal will add new software capabilities to Leonardo’s U.S. defense business.
Raft said its platform was built to integrate across different systems. The company does not rely on a closed architecture.
“Joining DRS is a natural next step for our team and our mission,” said Shubhi Mishra, Founder and Chief Executive Officer of Raft. “Our open-architecture platform was built to integrate across systems, not lock customers in, and pairing it with DRS’s sensing and computing franchises will accelerate our ability to deliver mission capability at a global scale.”
Leonardo DRS will fund the $450 million purchase through cash on hand and borrowings. The company will use its revolving credit facility for part of the financing.
The transaction is expected to generate a tax benefit over 15 years. Leonardo DRS estimates its present value at about $50 million.
The acquisition is expected to increase adjusted diluted earnings per share in the first full year of ownership. The purchase price remains subject to customary post-closing adjustments.
The transaction is expected to close in the fourth quarter of 2026. Completion remains subject to regulatory approvals and customary closing conditions.
