Nukkleus Inc. (NASDAQ: NUKK) closed its acquisition of Star 26 Capital Inc. on January 12, 2026, taking full ownership of the defense‑focused vehicle and its portfolio of subsidiaries, including Rimon Agencies Ltd., a key generator supplier for Israel’s Iron Dome missile‑defense system. The transaction was structured as a $16 million investment note and a $6 million short‑term promissory note, following a prior 51 % stake purchase in December 2024 that was valued at $26 million.
The deal expands Nukkleus’s presence in the Tier‑2 and Tier‑3 defense supply chain, positioning the company to capture demand from the $8.7 billion U.S. defense package that funds Iron Dome production. By integrating Rimon’s exclusive distribution relationships with Rafael Advanced Defense Systems and Elbit Systems, and adding AI, UAV, and motion‑control assets from Water.io and ITS/Positech, Nukkleus gains a diversified portfolio that aligns with the projected $23 billion military UAV and UAS market by 2030.
Financially, Nukkleus has been operating with a current ratio of 0.3 and negative equity, leading to a “Significantly Overvalued” rating from GuruFocus. The acquisition adds assets but also increases short‑term debt, reinforcing the company’s need for disciplined cash flow management as it transitions from a fintech background to a defense‑technology holding company.
Market reaction to the announcement has been muted, with analysts maintaining a consensus “Sell” rating. No specific price movement data is available, but the negative sentiment reflects concerns about valuation and integration risk.
CEO Menny Shalom emphasized the strategic importance of strengthening the Tier‑2 and Tier‑3 supplier level: “By bringing Star 26 and its portfolio of specialized manufacturers into the Nukkleus ecosystem, we are strengthening this critical layer of the defense supply chain.” He added that bottlenecks at this level often cause production delays, underscoring the value of the new assets.
The acquisition marks a decisive pivot for Nukkleus, moving from a fintech focus to a diversified defense technology platform. While the deal offers significant growth opportunities, the company must navigate integration challenges and address valuation concerns to realize the full potential of its expanded portfolio.
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