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Finance

US drone firm Red Cat seeks control of Austria's Steyr Motors in $230 million deal

Published by Global Banking & Finance Review

Posted on October 19, 2026

2 min read

· Last updated: October 19, 2026

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Red Cat Seeks $230 Million Acquisition of Austria’s Steyr Motors in Strategic Move

Details of the Red Cat and Steyr Motors Acquisition Deal

Acquisition Offer and Valuation

Oct 19 (Reuters) - Austrian engine and engine parts manufacturer Steyr Motors said on Monday that US drone maker Red Cat Holdings plans to acquire the company in a deal valued at about €204.8 million ($230 million).

Takeover Offer Terms

• Red Cat intends to launch a voluntary takeover offer for all Steyr shares at €39 per share in cash, a 28.9% premium to the stock's last closing price.

Market Reaction

• Shares in Steyr jumped 20%, on track for the best day since March 2025.

Stakeholder Agreements and Conditions

Major Shareholder Participation

• B&C Holding Österreich, which owns about 15% of Steyr Motors, has agreed to tender its stake, Steyr said.

Regulatory and Completion Conditions

• The transaction is subject to conditions, including foreign direct investment approvals and a minimum acceptance threshold of 50% plus one share, with Red Cat expecting to complete the acquisition in the first half of 2027.

Leadership Perspectives on the Deal

CEO and Board Statements

CEO's Intentions

• Steyr CEO Julian Cassutti said he intends to tender his own shares as well.

Supervisory Board's View

• Steyr Supervisory Board Chairman Rolf Wirtz said the board sees strategic potential in the proposed combination

Additional Information

($1 = €0.8910)

(Reporting by Amir Orusov, editing by Ludwig Burger and Thomas Seythal)

Key Takeaways

  • Red Cat Holdings is proposing to acquire Steyr Motors for €39 per share in cash, equivalent to approximately US$230 million, representing a ~28.9% premium to the stock’s closing price on October 16, 2026 (ir.redcatholdings.com).
  • The deal is supported by B&C Holding Österreich, which holds ~15% of Steyr and has committed to tender its shares; the acquisition is expected to close in H1 2027, subject to regulatory approvals and a minimum 50% plus one share acceptance threshold (ir.redcatholdings.com).
  • Red Cat plans to preserve Steyr Motors’ headquarters, production and R&D in Austria, and sees the acquisition as a strategic complement to its Blue Ops uncrewed surface vessel initiatives while accelerating Steyr’s international expansion (ir.redcatholdings.com).

References

Frequently Asked Questions

What is the value of Red Cat's proposed acquisition of Steyr Motors?
Red Cat plans to acquire Steyr Motors in a deal valued at approximately €204.8 million ($230 million).
What premium is Red Cat offering to Steyr Motors shareholders?
Red Cat is offering €39 per share in cash, representing a 28.9% premium to Steyr's last closing price.
When is Red Cat expecting to complete the Steyr acquisition?
Red Cat expects to complete the acquisition in the first half of 2027, pending conditions.
What conditions apply to the Red Cat-Steyr Motors transaction?
The deal is subject to foreign direct investment approvals and a minimum acceptance threshold of 50% plus one share.
Who has agreed to tender their shares in Steyr Motors?
B&C Holding Österreich (owning 15% of Steyr) and Steyr CEO Julian Cassutti intend to tender their shares.

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