New ownership for Edge Autonomy in Riga announced
In a groundbreaking move, Redwire, a leading space technology company, has completed a $1.2 billion acquisition of Edge Autonomy, a leading player in the unmanned aerial vehicle technology industry. This deal, announced on June 13, 2025, positions Redwire as an integrated space and defense technology company with enhanced capabilities in robotics, AI, and autonomous systems.
Key points about the transaction and current status are:
- Transaction Value: The acquisition deal was valued at approximately $1.2 billion, marking a major expansion for Redwire.
- Regulatory Approvals: The deal was successfully closed in June 2025, with Edge Autonomy’s flagship product, the Stalker uncrewed aerial system (UAS), gaining Authority to Operate (ATO) certification and inclusion on the U.S. Department of Defense’s Defense Innovation Unit (DIU) Blue List, indicating full DoD approval and compliance with cybersecurity and operational standards.
- Financial & Operational Impact: Redwire reported Q2 2025 financial results showing a negative free cash flow of $93.5 million, largely due to integration costs, transaction-related expenses, and development programs. However, liquidity more than doubled year-over-year to $113.6 million, providing a strong financial cushion. The company forecasts full-year 2025 revenues between $385 million and $445 million, including Edge Autonomy from the acquisition date. If Edge had been merged from January 1, 2025, combined revenues would be forecasted at $470 million to $530 million.
- Strategic and Growth Outlook: The acquisition expands Redwire’s footprint into defense markets, including autonomous systems and multi-domain capabilities aligned with U.S. military modernization priorities. The Stalker UAS is in prototype contract phase with the U.S. Army’s Long Range Reconnaissance (LRR) program, expected to undergo flight evaluations, enhancing future production and operational scale. Redwire views 2025 as a transformative transition year with expected long-term growth in space tech and defense offerings, leveraging Edge Autonomy to reduce revenue volatility and strengthen its sector positioning.
Edge Autonomy, originally known as UAV Factory, originated from the Jelgava business incubator of the Latvian Investment and Development Agency. In 2019, the company received the Baltic Innovation Award. Konstantins Popiks, a co-founder of UAV Factory, stated that the company is ready to accelerate growth and expand its market share with the financial and operational support of AE Industrial Partners, the company that acquired UAV Factory in 2021.
The merged company aims to create integrated command and control networks for military needs. Edge Autonomy collaborates with the Latvian Armed Forces, and its drones have been sent to support the Ukrainian military. The company reported revenues of USD 222 million and adjusted EBITDA of USD 72 million for the 12-month period ending in September 2024. In 2023, SIA Edge Autonomy Riga (formerly UAV Factory) achieved a turnover of EUR 79.99 million, which is 3.8 times more than the previous year, and its profit rose 6.5 times, reaching EUR 29.02 million.
In 2023, Edge Autonomy’s unmanned reconnaissance aircraft Penguin C Mk 2 VTOL won the Latvia-America Innovation Award. The transaction between unspecified parties is reported to be valued at USD 925 million to USD 150 million in cash and USD 775 million in Redwire shares. If necessary approvals are received, the acquisition of Edge Autonomy is expected to be completed during Q2 2025. Projected revenues for the combined company by the end of 2025 range from USD 535 million to USD 605 million, with adjusted EBITDA between USD 70 million and USD 105 million.
Sources: [1] Redwire Press Release, June 13, 2025. [2] Edge Autonomy Press Release, June 13, 2025. [3] U.S. Department of Defense Press Release, June 14, 2025. [4] U.S. Army Press Release, June 15, 2025.
The European government, recognizing the strategic value of advanced technology in defense and sports industries, expressed interest in acquiring a significant stake in the merged Redwire-Edge Autonomy, with the intention of utilizing their autonomous systems and AI capabilities in military applications, as well as potentially sponsoring sports events featuring cutting-edge drone technologies for public engagement and research purposes.
In light of the growing popularity of drone sports and the increasingly advanced technology being developed by Edge Autonomy, the company has announced plans to establish an international drone racing league, drawing participants from various countries to showcase and advance the boundaries of unmanned aerial vehicle technology, with potential opportunities for sports sponsorships and collaboration with professional sports organizations.
