Tel Aviv: Israeli Homeland Security Company VELORYX continues to accelerate its growth strategy through the acquisition of complementary technology companies in the homeland security sector.
The company has signed a non-binding memorandum of understanding to acquire control of an Israeli electronic warfare company, approximately three months after acquiring drone company AeroSol, in a move that expands the group’s activities into the fields of electronic warfare and drone jamming. Under the transaction, VELORYX will acquire 70% of the company’s shares at a valuation of approximately $75 million.
As part of the transaction structure, VELORYX will invest $12 million directly into the acquired company to support its development plans and accelerate the international expansion of its technologies. In addition, VELORYX will purchase shares from the existing shareholders for approximately $40.6 million.
The transaction also includes an earn-out mechanism reflecting the target company’s growth potential through future contracts and projects. Under this mechanism, VELORYX may make two additional payments of $8 million each, subject to predefined performance milestones. The first payment is contingent on the signing of a material agreement in 2026 and either binding contracts totalling at least $65 million or annual sales of $40 million in that year. The second payment is contingent on achieving annual sales of $65 million in 2027.
The company has sold its systems to dozens of customers worldwide and maintains a broad and diverse portfolio of more than ten products. Its core products include a drone detection, jamming and neutralisation system, alongside communications and radio jamming systems operating up to 27 GHz, designed to address drones, explosive devices and other threats.
To date, the company has delivered more than 75 projects across approximately 40 countries and works with defence and government customers in Israel and international markets, including Africa, Asia, South America, Europe and the United States. According to company data, the company combines design, manufacturing, assembly, testing and quality assurance capabilities, enabling it to tailor solutions to the different operational needs of its customers and maintain high flexibility in meeting varied operational requirements.
From VELORYX’s perspective, the valuation set out in the memorandum of understanding reflects an attractive multiple compared with other transactions in the defence market and in the counter-drone solutions sector, particularly in light of the company’s scale of activity, international experience and breadth of capabilities.
The transaction is being signed at a time when electronic warfare and counter-drone capabilities are at the centre of global defence demand. Drones have evolved from tactical tools into a significant strategic threat to military forces, borders, infrastructure facilities, airports, strategic sites and mass events.
According to Roy Bargil, CEO of VELORYX, said, “The signing of the memorandum of understanding is another step in building a strong, high-quality and resilient Israeli Homeland Security group that connects companies with proven technology, operational experience and existing customers. The threats surrounding drones, borders, strategic facilities and critical infrastructure require integrated solutions, not a single standalone product. The combination of aerial capabilities, electronic warfare, detection, disruption, command and control, and operational response is exactly where the market is heading, and this is the platform we are building at VELORYX.”
The transaction strengthens VELORYX’s activity in one of today’s core defence needs: protection against a wide range of threats, primarily unmanned threats, including drones and other threats, through electronic warfare and jamming solutions.
Alongside AeroSol’s drone activity, the addition of these capabilities expands VELORYX’s offering to defence and government customers in areas such as border protection, critical infrastructure, sensitive facilities and complex operational environments.
-The writer is an Israel-based freelance journalist. The views expressed are of the writer and do not necessarily reflect the views of Raksha Anirveda
