Red Cat Offers €39 Per Share to Acquire Austria’s Steyr Motors

U.S. defense technology company Red Cat Holdings has announced a proposed all-cash takeover of Austrian engine manufacturer Steyr Motors AG, offering €39 per share in a transaction aimed at expanding its capabilities in autonomous maritime systems and specialized military propulsion.

The offer, announced on October 19, 2026, will be made through SMOT Acquisition GmbH, a Vienna-based subsidiary wholly owned by Red Cat. The proposed price represents a 28.9% premium to Steyr Motors' closing share price on October 16 and a 27.3% premium to its 30-day volume-weighted average price.

Red Cat is seeking to acquire all outstanding shares of Steyr Motors, with the transaction subject to a minimum acceptance threshold of 50% plus one share and regulatory approvals in Austria, Italy, Australia and the United Kingdom.

The companies expect the acquisition to be completed in the first half of 2027, provided the required conditions are satisfied.

Austrian Engine Manufacturing at the Center of the Deal

Headquartered in Steyr, Austria, Steyr Motors develops and manufactures high-performance engines for military vehicles, naval vessels and other demanding applications. Its products also serve as auxiliary power units for main battle tanks and locomotives.

Red Cat, headquartered in Salt Lake City, Utah, develops unmanned aircraft, autonomous maritime platforms and related defense technologies. The proposed acquisition is particularly relevant to its Blue Ops division, which focuses on uncrewed surface vessels.

According to Red Cat, integrating Steyr Motors' marine engine technology with its autonomous maritime portfolio would strengthen the company's ability to supply propulsion solutions for unmanned naval platforms.

Red Cat intends to retain Steyr Motors' headquarters, manufacturing operations and research and development activities in Austria. It also plans to support the Austrian company's existing customers and continue supplying engines independently of Red Cat's own platforms.

B&C Holding Supports the Acquisition

Austrian shareholder B&C Holding Österreich GmbH, which controls approximately 15% of Steyr Motors' shares, has entered into a binding agreement to tender its holdings into the proposed offer.

Steyr Motors CEO Julian Cassutti has also expressed support for the transaction and announced his intention to tender his own shares.

Red Cat CEO Jeff Thompson described Austria as central to the future of Steyr Motors, emphasizing plans to support the company's workforce, manufacturing operations and international expansion.

Steyr Motors' Supervisory Board has indicated a favorable initial view of the proposed combination, subject to reviewing the final offer documentation and its legal and economic terms.

The companies had previously discussed a potential transaction before discontinuing talks in July 2026. Negotiations later resumed and resulted in the newly announced, fully financed cash proposal.

Transaction Expected to Close in 2027

The shareholder acceptance period is expected to begin following publication of the official offer document and conclude on December 18, 2026, at 5:00 p.m. Central European Time.

The transaction remains conditional on shareholder participation and regulatory clearance, including foreign investment reviews.

If completed, the acquisition would bring an established Austrian manufacturer of specialized military and marine engines under the ownership of a publicly traded U.S. defense technology company.

The companies have not announced a completed acquisition, nor have they disclosed specific new manufacturing contracts arising from the proposed combination.