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Why Space Stock Redwire Soared Today
The Motley Fool· 2025-06-09 15:51
Core Viewpoint - Redwire Corporation is proceeding with its acquisition of Edge Autonomy, which has positively impacted its stock price, reflecting investor confidence in the deal [1]. Group 1: Acquisition Details - Redwire announced plans to acquire Edge Autonomy for $925 million, consisting of $150 million in cash and $775 million in Redwire stock [2]. - The acquisition terms have been slightly modified, with the cash portion increasing to $160 million and the stock portion decreasing to $765 million. Additionally, $100 million of the cash will be in the form of an unsecured promissory note from a Redwire subsidiary [4]. Group 2: Stock Performance and Valuation - Following the acquisition announcement, Redwire's stock price increased from less than $15 to nearly $20, indicating a significant rise in market valuation [5]. - The shares being issued to Edge Autonomy are valued at approximately $20, which is higher than the initial expected value of less than $15, resulting in a profitable situation for Edge's owners [5]. - The adjustment in payment structure, favoring cash over stock, is viewed as modestly positive for Redwire's stock, contributing to a 7% increase in share price [6].