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Nukkleus, Inc. Achieves Strategic Milestone with Acquisition of a Controlling Stake in Star 26 a Defense-focus acquisition company and a provider of Israel's Iron Dome Missile Defense System
NukkleusNukkleus(US:NUKK) Prnewswire·2024-12-17 15:42

Acquisition Details - Nukkleus Inc acquired a 51% controlling stake in Star 26 Capital Inc, which holds 95% ownership in RIMON, a leading Israeli defense component supplier [1] - The total purchase price was $26 million, including cash, a promissory note, Nukkleus common stock, and warrants to purchase additional shares [2] - The acquisition includes an option agreement for Nukkleus to acquire the remaining equity in Star 26 at a later date [2] RIMON's Business Operations - RIMON operates two key business lines: distribution of generators, masts, and lighting solutions through exclusive distributorship agreements [2] - RIMON designs, engineers, and integrates tactical vehicles, including reconnaissance vehicles, mobile command and control units, and satellite broadcast platforms, serving special defense forces and intelligence agencies [3] Strategic Implications - The acquisition positions Nukkleus at the forefront of the booming defense industry, capitalizing on opportunities driven by geopolitical shifts in the Middle East and the war in Ukraine [4] - RIMON's expertise in critical defense systems and partnerships with leading defense exporters like Rafael and Elbit Systems strengthens Nukkleus's capabilities in delivering innovative defense solutions [4] - Nukkleus plans to integrate Star 26 operations into its business structure and explore further growth opportunities, including expanding into banking, U.S. real estate, and technology-populated coworking space campus locations [4] Market Opportunities - The combined entity will focus on Israeli and US market opportunities, acquiring controlling interests in medium-sized companies while providing them financing and global business development opportunities [5] - The defense sector has seen rapid growth, with a 120% increase in Israel's defense indices and a 38% rise in similar indices in the US [4]