Rafael Advanced Defense Systems has partnered with Israeli businessman Avihai Stolero to make a $116.6 million (NIS 430 million) acquisition offer on Wednesday for Israeli drone maker Aeronautics, according to a report by Calcalist.
As part of the suggested deal, Rafael and Stolero intend to buy all of Aeronautics’ shares and delist it from the Tel Aviv Stock Exchange.
Rafael confirmed the details of the offer on Thursday, stating that the offer is part of the company’s international expansion plan.
"As part of the expansion of its activity, especially in the international markets and also through mergers and acquisitions, Rafael has decided, together with businessman Avihai Stolero, to offer NIS 430 million for the acquisition of Aeronautics. Rafael's capabilities in communications, closing firing circles, and so forth, combined with Aeronautics' capabilities, will enable Rafael to offer customers in Israel and overseas advanced systems with proven cost-benefit advantages," the company said.
The deal is subject to completion of due diligence, the signing of a binding agreement and receipt of various approvals.
Founded in 1997, Aeronautics specializes in the development of UAV for military use and has over 45 defense, military, and homeland security customers worldwide.