Nukkleus Acquires Tiltan for $14 Million, Boosts Defense Tech Focus

Nukkleus Inc. (NUKK) shares surged 39.2% to $6.78 on Tuesday after the company announced a $14 million deal to acquire Israel-based Tiltan Software Engineering Ltd. The acquisition, expected to close following regulatory approval and audited financials, underscores growing demand for AI-powered simulation and GPS-denied navigation tools for militaries. Tiltan develops synthetic data for machine learning, GPS-denied navigation for drones and unmanned systems, and immersive 3D environments for operational testing, with clients including Israel Aerospace Industries, Elbit Systems, and Rafael Advanced Defense Systems.

Nukkleus Inc. (NUKK) shares surged 39.2% to $6.78 on Tuesday after the company announced a $14 million deal to acquire Israel-based Tiltan Software Engineering Ltd. The acquisition, expected to close following regulatory approval and audited financials, underscores growing demand for AI-powered simulation and GPS-denied navigation tools for militaries. Tiltan develops synthetic data for machine learning, GPS-denied navigation for drones and unmanned systems, and immersive 3D environments for operational testing, with clients including Israel Aerospace Industries, Elbit Systems, and Rafael Advanced Defense Systems.

The acquisition positions Nukkleus in the rapidly growing defense AI market, projected to expand from $28 billion to $65.5 billion by 2034 [1]. Tiltan brings substantial technical capabilities and market credibility through its 30+ years of experience serving premier Israeli defense contractors [1]. The purchase will be executed through a combination of cash and shares, with payments structured over 6 months from closing [1].

The deal includes escrow arrangements for share issuance and is subject to regulatory approvals and PCAOB audited financial statements [1]. This transaction addresses two significant defense technology growth segments: the broader AI market and the anti-GPS jamming sector, which is expected to more than double by 2032 [1]. By acquiring Tiltan's proven capabilities rather than developing them internally, Nukkleus accelerates its market entry and establishes immediate credibility with defense customers who demand established, reliable solutions [1].

The $14 million acquisition adds cutting-edge defense AI, advanced simulation software, 3D engines, and operational systems to Nukkleus’ A&D portfolio [1]. Nukkleus specializes in acquiring and transforming high-potential A&D businesses into market leaders, leveraging operational expertise, strategic capital, and advanced technological insights to modernize offerings and expand market reach [1].

"[The acquisition] marks a major milestone in Nukkleus’ expansion into high value aerospace and defense technologies," said Menny Shalom, CEO of Nukkleus [1]. "Tiltan’s long-standing track record, award-winning solutions, and proven success make them the ideal partner for us."

The acquisition is subject to customary closing conditions including receipt of PCAOB audited financial statements of Tiltan and the receipt of required regulatory approvals including notification to the Israeli Defense Export Controls Agency [1].

References
[1] https://www.stocktitan.net/news/NUKK/nukkleus-inc-enters-28-billion-defense-ai-market-with-proposed-f3c0411z1oyw.html