Company agrees to acquire controlling stake in Israeli defence firm
VisionWave Holdings (NASDAQ:VWAV) shares soared 100% on Tuesday after the company announced a definitive agreement to acquire a 51% controlling interest in privately held Israeli aerospace and defence company Meteor Aerospace Ltd.
The transaction values Meteor Aerospace at a pre-money equity valuation of $40 million. VisionWave plans to acquire the controlling stake by issuing common stock valued at approximately $20.4 million, subject to customary closing conditions.
Closing remains subject to key milestones
The acquisition is conditional on several requirements being met, including successful flight validation of Meteor’s Impact-700 unmanned aerial platform, as well as the completion of legal, financial and technical due diligence.
VisionWave cautioned that there is no guarantee the transaction will be completed on the proposed terms, or at all.
Meteor Aerospace was founded by Itzhak Nissan, the former President and Chief Executive Officer of Israel Aerospace Industries, and has developed a portfolio of defence technologies spanning tactical and strategic unmanned aerial vehicles, unmanned ground vehicles, unmanned surface vessels, long-range precision loitering munitions, electronic warfare and SIGINT technologies, along with command-and-control systems.
VisionWave targets expanded defence technology platform
Following completion of the deal, VisionWave expects to appoint a majority of Meteor Aerospace’s board of directors and integrate the company’s technologies into its own defence technology platform.
Itzhak Nissan is expected to remain responsible for Meteor’s technological development as Chief Technology Director after the transaction closes.
Douglas Davis, Executive Chairman and Chief Executive Officer of VisionWave, commented that the proposed transaction “represents a significant strategic milestone in VisionWave’s history assuming we are able to close the transaction,” adding that the company “would be adding decades of aerospace engineering excellence, advanced autonomous platforms, electronic warfare capabilities, battlefield command-and-control technologies and a highly experienced management team.”
VisionWave describes itself as a defence technology company focused on developing artificial intelligence, autonomous systems and next-generation security technologies.