Merger between Leonardo DRS and RADA

Photo above: Maritime radar system developed by RADA

RADA Electronic Industries, and Leonardo DRS, announced that they have entered into a definitive agreement to merge and become a combined public company. Leonardo DRS will acquire 100% of the share capital in RADA in exchange for approximately 19.5% equity ownership to RADA shareholders in the Combined Company, which will maintain the name Leonardo DRS and is anticipated to trade on NASDAQ and TASE under the symbol “DRS.”

Leonardo DRS is owned by the Italian Leonardo SpA. Upon closing of the transaction, which is expected in the fourth quarter of 2022, RADA will become a wholly-owned Israeli subsidiary of Leonardo DRS and operate as a business unit within DRS’ Advanced Sensing segment. RADA’s 2021 revenues totaled $117 million. The combined Company had 2021 revenue of $2.7 billion.

RADA is a global pioneer of mini-tactical radars for active military protection, counter-drone applications, critical infrastructure protection, and border surveillance. It works closely with leading defense integrators such as Rafael, Elbit, Israel Aerospace Industries (IAI), Lockheed Martin, Boeing, Leonardo DRS, Rheinmetall Air Defense and others. Its small footprint and lightweight tactical radars sit at the heart of combat-proven Active Protection Systems (APS), Vehicle Protection Systems (VPS), and Hostile Fire Detection (HFD) applications.

RADA's Mobile Short Range Air Defense (M-SHORAD) system on board US Army Stryker armored vehicle
RADA’s Mobile Short Range Air Defense (M-SHORAD) system on board US Army Stryker armored vehicle

The merger agreement proves that Leonardo re-align its business to address these needs,  as it is daily demonstrated in the Russian-Ukrainian war. In fact, the company is undergoing a strategic assessment of its business. Last month it sold its commercial satellite business to SES for $450 million. The company explained the move as part of its “focus on transforming to meet the DoD’s important priorities.”

William Lynn III, CEO of Leonardo DRS, explained the merger with RADA using similar terms: “The conflict in Ukraine has underscored the vulnerability of forces to drone attacks and has highlighted the need for modern, capable force protection systems. The combination of RADA and Leonardo DRS will open international market opportunities, particularly in short-range air defense, counter-UAS, counter rockets, artillery and mortars (C-RAM) and vehicle protection systems.”

RADA to Open a Radar Production Facility in India

RADA Electronic Industries from Netanya, Israel, has signed a Memorandum of Understanding with ADTL, India, to establish a Joint Venture to manufacture and support RADA’s radars in India. RADA envisions this market as a strategic growth opportunity, but following the Indian Government’s policy of “Make in India”, it had decided to establish a strong local presence in partnership with a local defense company, offering tactical radars which are tailored to the requirements of the Indian Armed Forces.

The Indian partner,  Alpha Design Technologies (ADTL), is a 1,200+ people-strong, professional R&D and Production Organization, specializes in Fire Control Radars, Surveillance Radars, Tactical Communications, EW and Avionics. “Now is the right timing to develop our Indian market and become a provider of cutting-edge technologies to the Indian Armed Forces,” said Dov Sella, RADA’s CEO.

RADA provides military mini-tactical radars to the armed forces of more than 30 countries. Its radars sit at combat-proven Active Protection Systems (APS) and Vehicle Protection Systems (VPS) which expected to be installed in future combat vehicles og many armed forces around the world, including IDF and the US Army.


RADA reports $56 Million in New Orders in H1 2021

The provider of Software Defined Tactical Radar Systems, RADA Electronic Industries, has announced the receipt of $56 million of new orders in the first half of 2021, including $32 million in new orders during the second quarter 2021. This figure represents a growth of 37% in new orders when compared to the first half of 2020. The majority of these new orders will be delivered during 2021.

Of these new orders, approximately 91% were orders for RADA’s software-defined tactical radars for counter UAV, short-range air defense and counter fires (C-RAM), with 64% of the orders coming from the US market and 27% from the rest of the world. The remaining 9% were for RADA’s legacy avionics systems. Dov Sella, RADA’s CEO, said that the new orders,increase our confidence in our revenue guidance of over $120 million for 2021.” Following the announcement, Rada’s shares in NASDAQ rose by 6%, bringing the company value to $568 million.

RADA provides military mini-tactical radars to the armed forces of more than 30 countries, including IDF and the US Army. It works closely with leading defense integrators such as Rafael, Elbit, Israel Aerospace Industries, Lockheed Martin, Boeing, Leonardo DRS, Rheinmetall Air Defense, Hindustan Aeronautics (HAL) and Embraer. Its radars sit at the heart of combat-proven Active Protection Systems (APS) and Vehicle Protection Systems (VPS) which expected to be installed in future combat vehicles og many armed forces around the world.

RADA and Smart Shooter selected by the DoD to Counter-Drone program

Two Israeli companies, RADA and Smart Shooter, made the shortlist of suppliers selected by the US Department of Defense (DoD) for the Counter Small Unmanned Aerial Systems (C-sUAS) program. The DoD’s aim is to asses the technologies that will be used to detect and intercept hostile drones and UAVs in various scenarios, and to implement the strategy across the Army. The DoD will also plan to develop a uniform command and control architecture that will ensure interoperatibility between the various systems.

RADA develops portable tactical radars that are used in anti-drones air defense systems, while Smart Shooter has developed a smart fire control system for small arms, which homes in on the target by employing AI-based image processing, and assists the soldier fire accurately. The two technologies are already in operational use by American forces as an anti-drones measure.

A multi-layered strategy

In its program, released a couple of weeks ago, the DoD defined four types of systems to address different threat scenarios: Fixed/Semi-Fixed Systems, Mounted/Mobile Systems, Dismounted/Handheld systems, and Command and Control Systems. The two Israeli technologies are designated for two different layers of protection: RADA’s radar is used in air defense systems, usually stationed on marine vessels, detecting UAVs from medium range of a few miles and intercept them by various means such as laser or radio blasts, whereas Smart Shooter’s sight allows a foot soldier to bring down the drone with his personal weapon.

The DoD examined about 40 systems, of which only 7 were selected. It is difficult to estimate the volume of orders that both companies are expected to benefit from the program, as it depends on future budgeting and the procurment plans of the various military arms. According to a Congressional Research Service report, the DoD plans to invest at least $500 million in 2021 in research, development and procurement to implement the program.

RADA’s radar took down an Iranian drone

RADA has developed a new breed of compact radar that can be mobilized along with combat forces in the field. They are able to detect relatively small and short-range threats, and therefore serve as the means of detection in active protection systems for armored vehicles – which detect and intercept mortars and RPG – and in short-range air defense systems, which identify and intercept  UAVs. In the DoD’s program, RADA’s radar has been designated for the category of mounted and mobile systems. It is also embedded into the only marine defense system (LMADIS) selected at this stage for the program.

RADA has not revealed the manufacturer of the whole system that incorporates the radar, but it is most likely the X-MADIS system manufactured by the US-based company Ascent Vision (AVT). That can be surmised as both companies reported seperately that their systems took part ib the shooting down of the Iranian drone that approached the assault ship USS Boxer while it cruised in the Persian Gulf in June 2019. Ascent Vision’s system is able to detect a drone from a range of several miles and intercept it using a strong RF blast, which disrupts the communication link between the drone and the remote operator.

RADA’s CEO Dov Sella said that the DoD’s choice constitutes a recommendation for all security apparatuses. “It emphasizes the positioning of our radars as the primary option for any C-sUAS solution. We believe that this selection will increase our share in this growing market in the near term.” Counter-Drone efense systems are the most growing end market for RADA’s tactical radars. It has previously been reported that the U.S. Navy has already purchased about 150 of the company’s radar systems for assimilation into its air defense systems. RADA’s radar is also installed in Rafael’s drone interception system, Drone Dome.

To transforms every soldier into a sniper

Smart Shooter’s system was selected as one of the only three systems in the fourth category defined by the DoD: dismounted/Handheld Systems. If address the most direct confrontation, in which an infantry soldier need to destroy a drone hovering above with only his own weapon. It is exceptionally hard: The soldier is at great disadvantage vis-à-vis the drone, and his chances of hitting it are slim.

Based in a Kibbutz near Haifa, Smart Shooter was founded by two ex-Rafael’s rocket division, CEO Michal Mor and CTO Avshalom Ehrlich. The company developed a fire control system named SMASH, that can be fitted using a rail on top of any assault rifle. The soldier operates a system that homes in on the target using electro-optical sensors and tracks it using AI-aided image processing. It automatically aiming at the target, which allows the soldier to point the weapon effortlessly, and when the barrel is at the right angle the trigger is automatically released. The company estimates that the system dramatically improves the accuracy rates, even by less-skilled infantry soldiers, and even under poor visibility and under pressure and fatigue, and minimize the risk of harming the uninvolved.

The system is being used by the United States Army Special Forces in Iraq and Syria, and also by special units of the IDF on the Gaza border. Company CEO Michal Mor said that the DoD’s selection of the company’s technology comes after close collaboration with the Combating Terrorism Technical Support Office (CTTSO). “Our solution enables an accurate, swift and simple elimination of a hostile drone. Choosing us is a testament to the operational value that our technology has for the mission.”

RADA began the Production of Radars in The US

RADA Electronic Industries from Netanya, Israel, announced the manufacture of the first radar in its United States-based production line in Germantown, Maryland. To mark this milestone, Maryland Congressman David Trone visited the facility to welcome the new RADA employees and celebrated the delivery of its MHR radar to the US Marine Corps.

Dov Sella, RADA’s CEO, said that the US subsidiary has enabled RADA “to Americanize and adapt our technologies for the needs of the US military. Our radar systems are already embedded in the US Army and US Marine Corps’ current SHORAD (Short Range Air Defense) solutions, and we look forward to further empowering US defense agencies with our active protection solutions.”

Rada has developed a family of compact software-defined Tactical Multi-Mission Hemispheric Radars based on Active Electronically Scanned Array antennas. They offer a wide range of operational missions: Vehicle Active Protection Systems, Hostile Fire Detection, Counter-UAV, all-threat air surveillance, 3D perimeter surveillance, and more.

IMoD Selected Elbits’ Active Protection System for the Eitan AFV

The Israeli Ministry of Defense (IMOD) selected Elbit Systems’ Iron Fist Light Decoupled (IFLD) Active Protection System (APS), for the Israeli Defense Forces’ (IDF) Eitan new eight-wheeled Armored Fighting Vehicle (AFV) and the D-9 Bulldozer. The selection of the IFLD for the IDF’s Eitan AFV comes on the heels of the decision by the U.S. Army to proceed with the IFLD for the Bradley AFV.

Iron Fist current configuration includes optical sensors, RADA’s CHR radar, launchers and countermeasure munitions to defeat threats at a safe distance from the defended combat vehicles. The system provides full hemispherical protection coverage for close-range scenarios in both open terrain and urban environments.

The Eitan is an 8-wheeled vehicle weighing approximately 30-35 tons. It has a top speed of 90 km/h and can carry 12 men including 3 crew, a 30 mm gun and a missile firing position. The Eitan is planned to replace hundreds of outdated M113s vehicles still in active service.

The Iron Fist incorporates RADA’s software defined Compact Hemispheric Radars (CHR). Dov Sella, RADA’s CEO, said: “We are working with Elbit/IMI for over a decade on the development and testing of the Iron Fist APS, and have continuously improved our radar capabilities. We estimate the total available market of radars for APS at over $2.5 billion globally. Based on the Israeli and US selections of the Iron Fist, we anticipate accelerated global interest by many modern armed forces who seek to enhance defensive capabilities for their AFVs”.

Demonstration of Iron Fist series of Active Protection System: