Greetings, and welcome to the Redwire Conference Call and Webcast to discuss Redwire's agreement with QinetiQ Group to acquire its QinetiQ Space NV business. My name is Shamali, and I'll be your operator today. At this time, all participants are in a listen-only mode. Please be advised that the company will not be taking questions at the end of this presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce you to today's call Nicole Taylor, Vice President of Financial Operations and Investor Relations. Ms. Taylor, you may begin your conference call.
Thank you, Shamali, and good morning, everyone. Welcome to Redwire's Conference Call to discuss Redwire's agreement with QinetiQ Group to acquire its QinetiQ Space NV business. I am Nicole Taylor, Vice President, Financial Operations and Investor Relations, and with me on the call are Pete Cannito, Chairman and Chief Executive Officer, and Jonathan Baliff, Chief Financial Officer and Director. We hope that you have seen our press release, which we issued this morning, and it is posted in the investor relations section of our website at redwirespace.com. Let me remind everyone that during the call, Redwire management may make forward-looking statements that reflect our beliefs, expectations, intentions, or predictions of the future. Our forward-looking statements are subject to risks and uncertainties that are described in more detail on slide two.
Additionally, to the extent we discuss non-GAAP measures during the call, please see slide three, our press release and investor presentation on our website for the calculation of these measures and US GAAP reconciliation. With that, I would like to turn the call over to Pete. Pete?
Thanks, Nicole. We're very excited to be here today to talk about Redwire's acquisition of Space NV from QinetiQ Group. This is an important acquisition from an industry and financial standpoint for our company, and it is expected to provide Redwire with broader access to addressable markets, significant contracted revenue backlog to bolster our growth, and increased public platform scale and profitability. Before we move on, I would like to take this opportunity to let the Space NV team know how delighted we are about this transaction. I believe the shared cultural similarities of our institutions, space, heritage, and innovation make this a great combination. Together, we will be performing for our important customers, serving our respective regions and countries, and accelerating humanity's expansion into space. Now I'd like to talk about the key benefits of this acquisition. Please turn to slide four in the presentation.
We believe this is the right acquisition for Redwire at an important time for both our company and our industry. First, it's expected to deliver significant shareholder value. Space NV will immediately and meaningfully increase our revenue and strengthen Redwire's backlog with a profitable and free cash flow positive business that we expect to be accretive to our adjusted EBITDA and free cash flow upon closing. Second, it expands our total addressable market and increases our exposure to European customers. In particular, Space NV's business will create new touch points for us in addition to those we already have through our operations and excellent team in Luxembourg. This expands business with existing customers and can drive new wins with prime customers while creating cross-selling opportunities.
Third, this combination expands Redwire's critical infrastructure offering, with Space NV's advanced capabilities in numerous areas to include berthing and docking as an outstanding example. Space NV also increases the scale of our public platform, creating better operating leverage and improving profitability. Please turn to slide five in the presentation. We are at the early stages of a multi-decade new global space race. This transaction comes at a critical time as space agencies in Europe, the U.S., and around the world are increasingly focused on space as a competitive domain. As we've seen from the conflict in the Ukraine, the broader geopolitical landscape has driven increased U.S. governmental budgets for national defense, with notably larger increases for space. This is also true in Europe, where the defense and space budgets are increasing at the fastest rate in decades, making Redwire and Space NV revenue streams more recession-resistant.
Further, we know our national security, civil, and commercial customers are extremely focused on developments in Chinese and Russian space infrastructure and technology, which has resulted in increased spending across our industry. Together with Space NV, Redwire will provide a full complement of infrastructure to our prime customers in the U.S. and Europe as we execute on their new missions ahead. Please turn to slide six in the presentation. I'd now like to give a more detailed overview of Space NV. Space NV is a Belgian-based commercial space business that provides design and integration of critical space infrastructure and other instruments for end-to-end space missions. Since its founding in 1983, Space NV has significant experience delivering observation platforms, science, navigation, and secure communications critical infrastructure to civil and commercial space customers, including the European Space Agency, or ESA, and the Belgian Science Policy Office.
These deep customer relationships are foundational to our future growth. Space NV's offerings complement Redwire's pick and shovel critical infrastructure and include advanced payloads, small satellite technology, berthing and docking equipment, and space instrumentation. Space NV also has payloads associated with emerging biotech in space, a critical area where Redwire is very active. Space NV has a history of attracting and developing some of the best space scientific and engineering talent in the world, with over 150 team members who join our extremely talented engineers and scientists in Luxembourg. Space NV has done all of this while growing profitably, as seen by their previously reported 12 months ended March 2022 revenue of EUR 49 million and EUR 3 million of profit after taxes. For this year and next, Space NV's contracted backlog is a healthy EUR 113 million.
Now turning to slide seven. In addition to the expected value this acquisition will drive for our team and shareholders, we're extremely excited for the benefits this will create for our global customers. Space NV is expected to provide Redwire complementary capabilities with increased geographic reach, unique IP across satellites, spacecraft and human landing systems with strong relationships across ESA and member governments. Beyond our complementary capabilities, Space NV's DNA align perfectly with Redwire's unique heritage plus innovation culture and proven performance, helping our company serve NASA, ESA, the Luxembourg Space Agency, and many multinational commercial space primes. Taken together, Redwire and Space NV will be the global provider of critical space infrastructure with a unique and independent space heritage and expanded product offering to an expanded European and global civil and commercial space community.
Now I'd like to turn the call over to Jonathan, who will talk more about the financial benefits of this transaction.
Thank you, Pete, and I share your enthusiasm for this combination. Let me discuss some of the transaction specifics starting on slide eight. I'll start by discussing how we're going to effect this combination. Redwire will acquire all of the issued share capital of QinetiQ Space NV, a public limited liability company incorporated under the laws of Belgium for EUR 32 million in a debt-free purchase. Redwire will finance the transaction through an equity-linked financing, where our largest investor, AE Industrial Partners, is committed for equity-linked securities, which will significantly strengthen the company's balance sheet and financial profile. After giving effect to this financing, and with zero synergies assumed in the calculation, the transaction is expected to be financially accretive to Redwire's adjusted EBITDA and free cash flow upon closing, as Space NV has experienced profitable top-line growth and features a strong financial profile.
As Pete said before, for the year ended March 31st, 2022, Space NV recorded EUR 49 million of revenue and EUR 3 million of profit after taxes on an international financial reporting standard basis. Redwire will also benefit from Space NV's strong contracted backlog of EUR 113 million as of 31st March, 2022. As a result, the transaction is expected to meaningfully increase Redwire's revenue by leveraging Space NV's attractive customer base with increased access to new market opportunities. From an integration standpoint, Space NV has independent facilities, proven leadership, and efficient operations, all of which are expected to enable a seamless transition upon closing of the transaction, which is expected in the Q4 of 2022 and is subject to customary approvals and closing conditions.
After closing, we intend to have Space NV's existing senior leadership, engineering and research and development, and operational structures to stay in place and anticipate integrating the companies without disruption to either Redwire's existing businesses or Space NV's existing operations. Please turn to slide nine for our conclusion. Before we wrap up the call, I want to reiterate four key takeaways from this combination. First, the Redwire combination with Space NV expands our total global addressable market, which is poised for sustainable growth as we enter the new global space race. Second, the combination provides for a more diverse space infrastructure offering for our customers as Space NV's excellent team members, their advanced capabilities, and technological focus complement Redwire's existing portfolio, especially our outstanding teams in Luxembourg. Third, Space NV will grow our platform in Europe and globally with profitable revenue and backlog expansion.
Finally, we have committed financing from our largest shareholder, AE Industrial Partners, and expect this acquisition to be financially accretive to Redwire and its shareholders, significantly strengthening our balance sheet and financial profile. In conclusion, we couldn't be more excited for the opportunities ahead for Redwire and Space NV, and look forward to talking more about this combination during our Q3 earnings call. Go, Redwire.
This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.