Red Cat Holdings Inc. (NASDAQ: RCAT) announced Monday a proposed all-cash offer to acquire Austrian engine manufacturer Steyr Motors AG for 39 euros per share, aiming to expand its autonomous maritime defense business.

The acquisition would combine Steyr Motors' specialized marine engines and manufacturing capabilities with Red Cat's growing portfolio of unmanned surface vessels.

Red Cat Offers Nearly 29% Premium for Steyr Motors

The offer represents a 28.9% premium to Steyr Motors' closing share price on Oct. 16 and a 27.3% premium to its 30-day volume-weighted average price.

Steyr Motors' major shareholder, B&C Holding Österreich GmbH, has agreed to tender its approximately 15% stake in support of the transaction.

The companies previously ended preliminary acquisition discussions in July before resuming negotiations and reaching a fully financed cash offer.

Red Cat CEO Jeff Thompson said the company plans to invest in Steyr Motors' Austrian operations while expanding its access to international defense markets.

Steyr Motors CEO Julian Cassutti backed the deal and said he intends to tender his shares. Meanwhile, the company's supervisory board expressed support for the proposed combination, subject to a review of the final terms.

Acquisition Targets Autonomous Maritime Expansion

Red Cat plans to integrate Steyr Motors' engine technology into its Blue Ops unmanned surface vessel strategy.

The deal could strengthen Red Cat's ability to serve military and government customers seeking autonomous maritime systems.

Steyr Motors develops specialized engines for military vehicles, boats, tanks and locomotives.

Following the acquisition, Red Cat intends to retain Steyr Motors' Austrian headquarters, manufacturing facilities and research operations. It also plans to preserve existing customer relationships while investing in expansion.

Regulatory Approvals and December Deadline

The offer requires regulatory approvals in Austria, Italy, Australia and the United Kingdom. It also carries a minimum acceptance threshold of 50% plus one share.

However, completion remains subject to regulatory clearances and other customary conditions.

Red Cat reported $325.6 million in cash as of June 30, 2026.

RCAT Price Action: Red Cat Holdings shares were up 8.05% at $5.09 during premarket trading on Monday, according to market data.