Nukkleus Inc. closed its acquisition of Tiltan Software Engineering Ltd. on December 30 2025, making the Israeli company a wholly owned subsidiary. The deal was valued at NIS 47.6 million (about $14 million), with 75 % paid in cash through six installments that finish in June 2026 and 25 % paid in Nukkleus common stock released from escrow on the settlement date.
Tiltan brings three core capabilities that align closely with Nukkleus’s growth strategy: advanced AI‑driven simulation, synthetic data generation, and GPS‑denied navigation systems. These technologies are in high demand by major defense customers such as Israel Aerospace Industries, Elbit Systems, and Rafael Advanced Defense Systems, and they position Nukkleus to capture a share of the projected $65.5 billion defense AI market by 2034.
The acquisition complements a pending purchase of Star 26 Capital, which includes Rimon, a key supplier for the Iron Dome missile‑defense system. Together, the two deals create a comprehensive portfolio of mission‑critical components for both Israeli and U.S. defense programs, strengthening Nukkleus’s foothold in high‑value defense supply chains.
Nukkleus’s own financials remain fragile. The company reported zero revenue and a significant net loss in the third quarter of 2025, with no guidance issued for the period. The cash‑based payment structure for Tiltan reflects Nukkleus’s need to preserve liquidity while still offering equity to the seller, and it signals management’s confidence that the acquisition will generate future revenue streams that offset current losses.
Strategically, the deal expands Nukkleus’s product suite into GPS‑denied navigation—a critical capability as modern conflicts increasingly rely on contested environments. By integrating Tiltan’s simulation and synthetic data tools, Nukkleus can offer end‑to‑end AI solutions that accelerate development cycles for defense systems, potentially driving higher margins once the acquisition is fully integrated.
Overall, the acquisition marks a significant step in Nukkleus’s transformation from a financial‑technology focus to a defense‑technology platform, positioning the company to benefit from a rapidly growing market while navigating current financial headwinds.
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