Nukkleus Agrees to Acquire Tiltan Software Engineering for $14 Million

Nukkleus, a finance company, has announced the proposed acquisition of Tiltan Software Engineering for $14 million. The purchase price will be paid in a combination of cash and shares. The acquisition aims to enhance Nukkleus' capabilities and expand its offerings in the software engineering space.

Nukkleus Inc. (NASDAQ: NUKK), a strategic acquirer and developer of high-growth businesses in the Aerospace and Defense (A&D) industry, has announced the execution and delivery of an agreement to purchase Tiltan Software Engineering Ltd. for $14 million [1]. The acquisition aims to enhance Nukkleus' capabilities and expand its offerings in the software engineering space.

The purchase price will be paid via a combination of cash and shares, with the cash portion to be paid over a period of 6 months from the closing, secured by a note issued by Nukkleus. At closing, Nukkleus will issue shares in escrow to secure the final cash payment to the seller, with the balance of the shares being returned to Nukkleus if the market price of the shares is higher than the value on the closing date [1]. Additionally, shares of Nukkleus common stock will be deposited into escrow to secure the additional payment due on the 180th day after closing [1].

Tiltan Software Engineering is a leading Israeli provider of advanced defense and aerospace solutions with over 30 years of experience. Specializing in AI-driven simulation, synthetic data, 3D engines, operational center systems, and GPS-denied navigation technologies, Tiltan serves top-tier clients including Israel Aerospace Industries, Elbit Systems, and Rafael Advanced Defense Systems [2].

The acquisition positions Nukkleus in the rapidly growing defense AI market, projected to expand from $28 billion to $65.5 billion by 2034 [2]. This strategic move allows Nukkleus to capitalize on increasing military demand for AI-driven simulation platforms and GPS-denied navigation systems.

The acquisition structure reveals a thoughtful approach to risk management. The $14 million purchase involves a combination of cash and equity spread over six months, with shares held in escrow to secure final payments. This structure provides Nukkleus flexibility while ensuring seller commitment through the transition period [2].

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://seekingalpha.com/news/4491190-nukkleus-announces-proposed-acquisition-of-tiltan-software-engineering
[2] https://www.stocktitan.net/news/NUKK/nukkleus-inc-enters-28-billion-defense-ai-market-with-proposed-f3c0411z1oyw.html