WASHINGTON — Leonardo DRS has entered into an agreement to acquire software company Raft in an all-cash transaction valued at $450 million, the company announced this week.
“Our customers increasingly require integrated hardware, software, data and autonomy to support mission outcomes. The acquisition of Raft will build on and accelerate the organic investment that DRS has made in that evolution,” said John Baylouny, president and chief executive officer of Leonardo DRS, in a press release issued Tuesday. “Raft brings proven software expertise and open-architecture technology that complements our existing sensing and computing capabilities, enhancing our ability to deliver AI-enabled mission solutions at the speed our customers demand.”
Founded in 2018, Raft specializes in open architecture mission software, integrating multiple data streams to support multidomain operations and accelerate decision-making for military commanders, according to the company.
As previously reported by Breaking Defense, Raft has played a significant role in the Army’s Next Generation Command and Control prototype initiative in the Pacific, working alongside the 25th Infantry Division. The firm is also expected to contribute substantially to the Army’s common data baseline project, recently awarded to Anduril in June.
Raft’s involvement in the Pacific extends beyond its collaboration with the Army and its command and control programs, encompassing efforts with the Air Force and Pacific Air Forces focused on advanced command and control technologies.
“Joining DRS represents a natural next step for our team and our mission,” said Shubhi Mishra, founder and chief executive officer of Raft. “Our open-architecture platform was designed to seamlessly integrate across systems rather than restrict customers, and aligning with DRS’s sensing and computing divisions will significantly enhance our ability to deliver mission-critical capabilities on a global scale.”
The acquisition announcement follows recent comments from Baylouny to Breaking Defense, in which he discussed the company’s strategy of identifying acquisitions that address specific capability gaps or expand its portfolio in areas such as artificial intelligence.
“There are numerous opportunities — and I’m not referring to structural weaknesses — but rather ways to enhance and move into adjacent areas. Whether it’s addressing technology or customer gaps, such as expanding our presence with the Air Force, it’s not an immediate priority, but it could open new distribution channels,” he noted. “Geographic expansion is also a consideration. By incorporating an acquisition, we might gain access to different regions worldwide. We’re actively evaluating these possibilities, though our primary focus remains on organic growth while remaining open to strategic inorganic opportunities.”
