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Leonardo DRS to Acquire Raft LLC for $450 Million

Leonardo DRS signs a $450M all-cash deal to acquire Raft LLC, a defense AI and data fusion software firm based in Virginia.

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Leonardo DRS, the US-listed subsidiary of Italian aerospace and defense group Leonardo S.p.A., has signed a definitive agreement to acquire Virginia-based defense software firm Raft LLC in an all-cash transaction valued at $450 million.

Announced on July 28, 2026, the acquisition targets the growing defense sector demand for AI and multi-domain data fusion. The integration is designed to improve real-time situational awareness and operational decision-making for national security customers by combining disparate data streams into a common operating picture.

Strategic expansion in defense software

Raft, headquartered in McLean, Virginia, specializes in open-architecture mission software. The company was founded in 2018 by Shubhi Mishra and has built a portfolio focused on data integration and AI-enabled solutions for military applications.

Lorenzo Mariani, Chief Executive Officer and General Manager of Leonardo S.p.A., stated in a press release that the acquisition aligns with the broader corporate strategy of expanding technological capabilities in the United States.

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. Raft’s open-architecture software, AI and data integration capabilities are highly complementary and additive to Leonardo DRS’s existing technology portfolio.

John Baylouny, President and Chief Executive Officer of Leonardo DRS, noted that defense customers increasingly require integrated hardware, software, data, and autonomy to support mission outcomes. He added that Raft brings proven software talent that complements the company’s existing sensing and computing capabilities.

Financial terms and transaction details

The $450 million all-cash transaction is expected to close in the fourth quarter of 2026, pending regulatory approvals and customary closing conditions. Leonardo DRS anticipates the deal will generate a tax benefit with an estimated present value of $50 million over the next 15 years.

Leonardo S.p.A. currently holds a 71.38% stake in Leonardo DRS. The parent company views the acquisition as a key step in expanding its footprint in the US defense market. Raft has previously received financial backing from investment firm Washington Harbour Partners.

Mishra described the acquisition as a natural progression for the software firm and its development teams.

Joining DRS is a natural next step for our team and our mission. 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 is scheduled to discuss the acquisition further during its second-quarter 2026 earnings conference call on July 30, 2026.

AirPro News analysis

We view the acquisition of Raft as a direct execution of the strategic priorities outlined by John Baylouny when he assumed the role of CEO at Leonardo DRS on January 1, 2026. Baylouny succeeded Bill Lynn with a stated mandate to expand the company’s capabilities in advanced sensing, network computing, and AI-enabled mission solutions.

By acquiring a specialized software firm rather than attempting to build these capabilities entirely in-house, Leonardo DRS accelerates its ability to compete for complex, multi-domain defense contracts. The emphasis on open-architecture systems is particularly notable. Defense departments globally are actively moving away from proprietary, vendor-locked platforms in favor of interoperable data environments, making firms like Raft highly attractive acquisition targets for traditional hardware primes.

Sources: Leonardo S.p.A.

Photo Credit: Leonardo DRS

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Defense & Military

Canada Awards Volatus Aerospace C$25M Tactical ISR Drone Contract

Canada awarded Volatus Aerospace a 5-year, C$25M contract for up to 5,000 tactical ISR UAS under the Defence Drone Initiative.

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On September 10, 2026, the Government of Canada awarded Volatus Aerospace Inc. a five-year contract to supply up to 5,000 Low-Cost Tactical Intelligence, Surveillance and Reconnaissance (ISR) Uncrewed Aircraft Systems (UAS) for the Canadian Armed Forces (CAF). The agreement establishes a procurement pathway valued at up to C$25 million, marking the company’s first direct contract conversion under the national Defence Drone Initiative (DDI).

In a press release issued by the Mirabel, Québec-based company, Volatus confirmed an initial order of 100 tactical ISR systems. The contract includes options for the Canadian government to acquire up to 4,900 additional units over the five-year term to support land forces operations.

Procurement framework and financial details

The contract operates under a government procurement framework that establishes a maximum price of C$5,000 per system. While the total procurement envelope is capped at C$25 million, Volatus Aerospace noted that its specific contracted pricing remains commercially confidential.

The agreement covers an end-to-end solution for the Canadian Armed Forces. Beyond the delivery of the aircraft, the contract includes payloads, ground control stations, data links, training, and sustainment services.

Volatus Aerospace Chief Executive Officer Glen Lynch stated that the contract validates the company’s integrated model, which extends beyond hardware delivery to include technical support and payload integration.

“Canada is seeking sovereign, secure and supportable defence technologies that can be fielded efficiently and scaled as operational requirements evolve,” Lynch said.

Defence Drone Initiative integration

The September 10 award follows a September 3, 2026, announcement that Volatus Aerospace had qualified across all five work streams of the Government of Canada’s DDI Marketplace. This pre-qualification established the company as an eligible supplier for future uncrewed and autonomous systems for both the CAF and the Canadian Coast Guard.

This contract represents the first Request for Proposal issued under Stream 1 of the DDI program, which covers uncrewed and autonomous systems as well as counter-UAS technologies.

AirPro News analysis

We view this contract as a critical milestone for Volatus Aerospace in transitioning from a qualified vendor to an active supplier for the Canadian military. Securing the first Stream 1 contract under the DDI Marketplace positions the company favorably for future domestic defense procurements. The structure of the contract, heavily weighted toward options rather than firm initial orders, indicates that the Canadian Armed Forces will likely evaluate the initial 100 systems in operational environments before committing to the full 5,000-unit ceiling.

Sources: Volatus Aerospace Inc. (September 10, 2026)

Photo Credit: Volatus Aerospace

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Defense & Military

USCG Inducts First HC-130J Super Hercules at Sacramento

The U.S. Coast Guard inducted its first HC-130J Super Hercules at Air Station Sacramento on September 10, 2026.

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The U.S. Coast Guard (USCG) officially inducted its first Lockheed Martin HC-130J Super Hercules at Air Station Sacramento on September 10, 2026, marking a significant capability upgrade for maritime patrol and interdiction missions on the West Coast.

The delivery of aircraft tail number CGNR-2018 initiates the station’s transition away from the legacy Alenia C-27J Spartan. According to a Coast Guard press release, the new platform will enhance heavy air transport and intelligence, surveillance, and reconnaissance (ISR) operations across the Pacific region.

Fleet modernization and capabilities

The HC-130J Super Hercules provides a substantial performance increase over the outgoing C-27J fleet. The aircraft operates with a cruise speed of 320 knots and a range of 4,900 nautical miles. Its endurance exceeds 20 hours, allowing for extended maritime patrols and prolonged on-scene loiter times during search and rescue or law enforcement missions.

L3Harris Technologies completed final delivery activities and missionization for this specific aircraft in Waco, Texas, in February 2026. The integration process equips the airframe with specialized sensor suites and communication arrays required for Coast Guard operations. CGNR-2018 is the 18th fully missionized Super Hercules to enter the active Coast Guard fleet.

Vice Adm. Joseph Buzzella, Commander of U.S. Coast Guard Pacific Area, attended the induction ceremony at McClellan Park, California. He described the delivery as a monumental step forward for Air Station Sacramento and the future of Coast Guard aviation.

Strategic expansion and funding

The Coast Guard is utilizing a portion of a $1.142 billion investment from fiscal year 2025 budget reconciliation funding allocated for fixed-wing aircraft. This capital is driving the expansion of HC-130J operations to two additional air stations, including the Sacramento facility.

Prior to this expansion, the service operated the HC-130J out of three primary locations: Elizabeth City, North Carolina; Kodiak, Alaska; and Barbers Point, Hawaii. A second HC-130J designated for Sacramento is currently undergoing missionization at the L3Harris facility in Texas and is anticipated for delivery in the spring of 2027.

Buzzella noted the operational focus of the new fleet during the ceremony. He stated the aircraft will be critical to detecting and interdicting migrant and narcotics flows through the maritime approaches to the United States.

AirPro News analysis

We view the transition from the C-27J Spartan to the HC-130J Super Hercules at Air Station Sacramento as a logical consolidation of the Coast Guard’s fixed-wing logistics and patrol architecture. The C-27J presented unique supply chain and maintenance variables after the Coast Guard inherited the fleet from the U.S. Air Force. Standardizing around the HC-130J provides the service with greater payload capacity, extended loiter times for ISR missions, and a more streamlined maintenance program across its Pacific and Atlantic operations. The $1.142 billion fiscal 2025 funding injection indicates strong legislative backing for this fleet homogenization strategy.

Sources: U.S. Coast Guard

Photo Credit: U.S. Coast Guard

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Defense & Military

Hermeus Unveils Ramjet-X Air-Launched High-Mach Test Vehicle

Hermeus introduced Ramjet-X on Sept 9, 2026, an air-launched test vehicle for high-Mach flight testing, backed by a $219M DIU contract.

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Hermeus unveiled Ramjet-X on September 9, 2026, introducing an expendable, air-launched test vehicle designed to lower the cost of high-Mach flight testing. The system will be deployed from the company’s reusable Quarterhorse Commercial-Aircraft, eliminating the need for traditional rocket boosters to reach ignition speeds.

In a press release issued on September 9, 2026, the venture-backed defense aviation company detailed its plans to offer “Flight Test as a Service” (FTaaS). By utilizing the Quarterhorse as a reusable first stage, Hermeus aims to provide a scalable platform for testing payloads, sensors, and materials in sustained high-Mach environments. Integrated vehicle testing for Ramjet-X is scheduled to begin in 2027.

Architecture and testing strategy

Ramjet engines require significant initial speed to ignite and operate effectively. Historically, this has necessitated the use of expensive, expendable rocket boosters for each test flight. Hermeus is bypassing this requirement by using its Quarterhorse aircraft to carry and launch Ramjet-X at high speeds and altitudes.

According to reporting by Aviation Week, the Quarterhorse program is advancing through a series of iterative vehicles, including the Mk 2.1, Mk 2.2, and Mk 2.3 variants. The Mk 2.1 recently demonstrated the ability to release a missile-like store during flight, validating the air-launch concept required for Ramjet-X. The follow-on Mk 2.2 is expected to reach speeds of Mach 2 or greater.

“High-speed flight testing is extremely expensive, and you don’t get many shots at it,” Hermeus Chief Executive Officer Zach Shore stated in the press release. “Ramjet-X gives us a way to put new systems into sustained high-Mach environments without building an expensive one-off test program every time.”

Corporate expansion and defense contracts

The Ramjet-X announcement follows a period of significant growth for Hermeus. Earlier in 2026, the company achieved a post-money valuation of $1 billion and relocated its headquarters from Georgia to El Segundo, California, according to Axios. High-temperature structures for Ramjet-X are currently in development at the new El Segundo facility, while ramjet engine testing is underway at the Hermeus HEAT facility in Jacksonville, Florida.

The company’s high-speed testing initiatives are supported by the United States Department of Defense. On May 28, 2026, Hermeus received a $159 million Contracts extension from the Defense Innovation Unit (DIU), bringing the total ceiling value of the award to $219 million. This funding supports the development of a high-speed, uncrewed testbed aircraft.

Shore noted in the company statement that combining speed, sustained flight, and scalability into a single system lowers the barriers to gathering data in extreme conditions. This architecture is intended to accelerate development timelines for both Hermeus and its commercial and government customers.

AirPro News analysis

We view the Ramjet-X program as a pragmatic stepping stone in Hermeus’ broader ambition to field operational hypersonic aircraft. By decoupling the high-Mach testbed from the launch vehicle, the company is adopting a modular approach that mitigates the financial risks associated with expendable rocket boosters. If the 2027 integrated flight tests are successful, the FTaaS model could disrupt the current high-speed testing market, which is currently bottlenecked by limited infrastructure and high per-flight costs. The recent $219 million DIU contract ceiling indicates strong institutional interest in expanding domestic high-Mach testing capacity.

Sources: Hermeus

Photo Credit: Hermeus

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