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Leonardo DRS agrees US$450m deal for Raft

The US arm of Italy's Leonardo buys AI software to turn its sensor data into a common operating picture.

M&A News deals deskIndustrials / Defence software · United States, Americas28 Jul 2026

Leonardo DRS announced on 28 July a definitive agreement to acquire Raft, a McLean, Virginia-based developer of open-architecture mission software, in an all-cash transaction valued at $450m.

Raft LLC website: teamraft.com

Why Leonardo DRS, Inc. is buying Raft LLC

Raft fuses data from distributed sensors and systems into a common operating picture for national security customers. DRS chief executive John Baylouny said customers increasingly need integrated hardware, software, data and autonomy, and that Raft adds software talent that complements DRS's sensing and computing franchises.

“Joining DRS is a natural next step for our team and our mission.”Shubhi Mishra, Founder and CEO, Raft

Deal terms and financing

The $450m price is subject to post-closing adjustments. DRS expects a tax benefit worth about $50m in present value and the deal to be accretive to adjusted diluted EPS in the first full year of ownership.

Regulatory approvals and timing

Closing is subject to regulatory approvals and is expected in the fourth quarter of 2026.

Market context

Raft was founded in 2018 by chief executive Shubhi Mishra. Leonardo DRS will discuss the deal alongside its second-quarter results on 30 July.

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