Red Cat Holdings Launches Bid to Acquire Austrian Engine Maker Steyr Motors

U.S. defense technology firm Red Cat Holdings announced Monday it is offering to acquire all outstanding shares of Steyr Motors AG for €39.00 per share in cash, valuing the Austrian manufacturer of customized engines at a substantial premium to recent trading levels. The proposed takeover would expand Red Cat's capabilities in defense and maritime applications as the company builds out its unmanned systems portfolio.

The voluntary public purchase offer represents a 55.8% premium to Steyr Motors' 52-week low, a 28.9% premium to the closing share price on October 16, and a 27.3% premium to the 30-day volume-weighted average price. Red Cat said the all-cash structure provides immediate liquidity to shareholders while eliminating execution risk associated with stock-based transactions.

Steyr Motors, based in Austria, manufactures customized engines for both defense and civil applications. The company serves military customers requiring specialized propulsion systems for ruggedized vehicles and vessels, as well as commercial clients in maritime and industrial sectors. Red Cat views the acquisition as strengthening its Blue Ops uncrewed surface vessel strategy by bringing engine manufacturing capabilities in-house.

Red Cat secured a crucial early commitment from B&C Holding Österreich GmbH, Steyr Motors' anchor shareholder, which has entered into an irrevocable undertaking to tender its shares into the offer. B&C Holding's stake represents approximately 15% of Steyr Motors' share capital, giving the bid momentum even before the formal acceptance period begins.

The proposed transaction follows an unusual negotiating history. Red Cat and Steyr Motors held non-binding discussions regarding a potential transaction earlier this year, but those talks were discontinued in July 2026. The companies subsequently resumed negotiations, resulting in what Red Cat describes as a fully financed all-cash offer with committed funding in place.

Red Cat expects to publish the formal offer document shortly, with the acceptance period commencing soon thereafter and ending on December 18, 2026 at 5:00 PM Central European Time. The company advised Steyr Motors shareholders to consult their custodian banks about applicable tender deadlines, which may fall several days before the formal deadline depending on the bank's processing requirements.

The proposed acquisition remains subject to customary closing conditions including regulatory approvals in Austria, Italy, Australia, and the United Kingdom. Red Cat must also achieve a minimum acceptance threshold of 50% plus one share for the transaction to close. Additional conditions will be detailed in the forthcoming offer document.

For Red Cat, the deal represents a bet that vertical integration in propulsion systems will create competitive advantages in the rapidly growing market for autonomous military platforms. The company has positioned itself as a provider of drone and robotic solutions for defense applications, with particular emphasis on maritime uncrewed vessels that require specialized engines capable of operating in harsh conditions.

Steyr Motors brings not only manufacturing capacity but also decades of engineering expertise in developing engines for demanding environments. That technical knowledge could accelerate Red Cat's product development timelines while reducing dependence on third-party suppliers.

The acquisition would also give Red Cat a foothold in European defense markets, where Steyr Motors maintains established customer relationships. As NATO countries increase defense spending in response to geopolitical tensions, Red Cat could leverage Steyr's European presence to compete for contracts that might otherwise prove difficult for a U.S.-based company to win.

Investors will watch whether Red Cat can secure the necessary regulatory approvals across four jurisdictions and achieve the 50% acceptance threshold. The strong premium and anchor shareholder support suggest the deal has a reasonable probability of success, but cross-border acquisitions in defense-related industries often face heightened scrutiny from national security reviewers.

The offer document, when published, will be available in German with a non-binding English translation on a dedicated transaction website. Shareholders will then have until mid-December to decide whether to tender their shares at the €39.00 offer price.