Finmeccanica acquires US-based group DRS Technologies
The Finmeccanica group, a world leader in the electronic equipment, systems and services sector for defence and security, and DRS Technologies, Inc., a leading US company in integrated electronic services and products for the defence sector, have announced an agreement whereby Finmeccanica will acquire 100% of DRS for approx. USD 5.2bn (€3.4bn). US-based DRS Technologies Inc. operates in electronics for the defence industry, providing systems, products and services for military forces, intelligence agencies and the leading prime contractors. DRS’s main client is the US government, including affiliated agencies, which accounts for some 90% of its revenues. The deal will allow Finmeccanica to consolidate its position as a leading player worldwide in provision of integrated systems for defence and security, by gaining an important footprint in the US market, and will enable DRS to exploit new and significant business opportunities in the U.S. and elsewhere. Finmeccanica will finance the acquisition initially through bank debt, which will subsequently be repaid by means of a rights issue, long-term bond issuance and asset disposals. Mediobanca is acting as Bookrunner and Mandated Lead Arranger on the bank loan and has been mandated to issue a fairness opinion on DRS Technologies.