- Nukkleus agreed to acquire Israeli defense firm Tiltan in a $14 million cash-and-stock deal.
- Shares of Nukkleus surged nearly 40% as investors cheered its expansion into AI-driven defense technology.
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Nukkleus Inc. NUKK shares soared on Tuesday after the company said it will acquire Israel-based Tiltan Software Engineering Ltd. in a $14 million deal. The acquisition, to be paid in a mix of cash and stock, is expected to close following regulatory approval and audited financials.
The announcement underscores growing demand for AI-powered simulation and GPS-denied navigation tools that help militaries operate in contested environments and reduce civilian risk.
Tiltan, a three-decade-old defense technology firm, develops synthetic data for machine learning, GPS-denied navigation for drones and unmanned systems, and immersive 3D environments for operational testing. Its clients include Israel Aerospace Industries, Elbit Systems ESLT, and Rafael Advanced Defense Systems, with multiple awards from Israel's Defense Ministry recognizing its innovation.
Also Read: Nukkleus Stock Drops Over 7% After Hours: What’s Going On?
"This partnership marks a major milestone in Nukkleus' expansion into high-value aerospace and defense technologies," CEO Menny Shalom said in a statement. He cited Tiltan's AI-driven simulation platforms and battlefield navigation systems as key drivers for positioning Nukkleus in the global market.
Payment terms include installments and shares placed in escrow to secure final settlement. Sellers will receive shares equal to 25% of the purchase price on the 180th day after closing, adjusted for market value. The structure is designed to balance flexibility with protection against price swings.
Nukkleus held Cash and cash equivalents of $1.519 million as of June 30, 2025.
The deal remains subject to approval from Israel's Defense Export Controls Agency. It follows Nukkleus' recent strategic European aerospace venture, which also boosted investor sentiment.
Sector ETFs, including the iShares U.S. Aerospace & Defense ETF ITA and SPDR S&P Aerospace & Defense ETF XAR, track the industry's rapid evolution.
Price Action: NUKK shares are trading 39.2% higher at $6.78 at the last check on Tuesday.
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