Red Cat Holdings, Inc. (NASDAQ: RCAT), a U.S.-based provider of drone and robotic solutions for defense and national security, announced on October 19, 2026 a proposed voluntary public purchase offer for all outstanding shares of Steyr Motors AG, an Austrian maker of customized engines for defense and civil applications. The all-cash offer is EUR 39.00 per share.

Offer Terms and Timeline

The offer price represents a 28.9% premium to Steyr Motors’ closing share price on October 16, 2026, a 27.3% premium to its 30-day volume-weighted average price and a 55.8% premium to its 52-week low. A wholly owned Red Cat subsidiary will make the offer, which Red Cat describes as fully financed.

Steyr Motors’ anchor shareholder, B&C Holding Österreich GmbH, has entered into an irrevocable undertaking to tender its shares, representing approximately 15% of Steyr Motors’ share capital. The offer requires a minimum acceptance of 50% plus one share, along with regulatory approvals in Austria, Italy, Australia and the UK.

Red Cat expects the acceptance period to begin shortly after the offer document is published and to end on December 18, 2026. According to Steyr Motors, Red Cat expects completion in the first half of 2027, subject to regulatory clearances. The two companies held non-binding talks earlier this year that were discontinued in July 2026 and later resumed.

Marine Engines for Red Cat’s Blue Ops Unit

Steyr Motors’ engines are used primarily in military special vehicles, military and civilian boats, and as auxiliary power units for main battle tanks and locomotives. Red Cat said the combination would strengthen its Blue Ops uncrewed surface vessel strategy by pairing Steyr Motors’ marine engine technology, manufacturing expertise and European base with Red Cat’s defense customer relationships. In its second quarter report, Red Cat said it had driven Blue Ops’ U.S.-built Variant 7 uncrewed surface vessel to full-rate production.

Red Cat intends to keep Steyr Motors’ headquarters, manufacturing operations and R&D in Austria, and to support its existing customers and customer-agnostic engine business. “Steyr Motors has built a strong business in Austria with specialized engineering talent, trusted customer relationships and proven marine engine technology,” said Jeff Thompson, Chief Executive Officer of Red Cat. “This proposed transaction is about investing in that foundation and helping Steyr Motors grow.”

Steyr Motors’ leadership has signaled support. “For our shareholders, the all-cash offer is a chance to realize their investment in cash today,” said Julian Cassutti, CEO of Steyr Motors. “I stand behind this step, and I intend to tender my own shares alongside them.” Dr. Rolf Wirtz, Chairman of the Supervisory Board, said the board “sees significant strategic potential in the proposed combination” and, subject to review of the offer document, views the potential transaction favorably.

Steyr Motors’ Backlog and Red Cat’s Balance Sheet

Steyr Motors reported first half 2026 revenue of EUR 22.8 million, roughly in line with the prior year, and an order backlog of EUR 310 million through 2030. Its pipeline includes engines for almost 500 boats for the Navy SEALs. In the same report, Steyr Motors adjusted its 2026 guidance to revenue growth of 15% to 25% and an EBIT margin of 8% to 12%, citing temporary delays in its defense business.

Red Cat makes the offer with cash of $325.6 million as of June 30, 2026, up from $167.9 million at the end of 2025. Second quarter revenue rose 527% year over year to $20.2 million, and the company reaffirmed its full-year 2026 revenue target of $150 million to $180 million.

Strategic Investment Summary

• Offer Announced: Red Cat Holdings (NASDAQ: RCAT) announced a proposed all-cash offer of EUR 39.00 per share for all outstanding shares of Steyr Motors AG.
• Offer Premium: The price is a 28.9% premium to Steyr Motors’ October 16, 2026 close and a 27.3% premium to its 30-day volume-weighted average price.
• Shareholder Support: Anchor shareholder B&C Holding Österreich GmbH, with about 15% of the share capital, has irrevocably agreed to tender, and Steyr Motors’ CEO intends to tender his shares.
• Conditions and Timing: The offer requires 50% plus one share and regulatory approvals in four countries, with the acceptance period expected to end December 18, 2026.
• Maritime Rationale: Red Cat plans to pair Steyr Motors’ marine engine technology with its Blue Ops uncrewed surface vessel business while keeping Steyr Motors’ operations in Austria.
• Balance Sheet: Red Cat held $325.6 million in cash as of June 30, 2026 and reaffirmed its 2026 revenue target of $150 million to $180 million.

Find out more about the latest corporate developments and financial reports at the Red Cat Holdings investor portal.

The post Red Cat Offers EUR 39 per Share in Cash for Austrian Engine Maker Steyr Motors appeared first on PRISM MarketView.

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