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JERSEY CITY, NJ, Dec. 17, 2024 /PRNewswire/ -- Dec 17, 2024 - Nukkleus, Inc. (NASDAQ: NUKK), a pioneer in the fintech sector traditionally focused on the cryptocurrency market, announced that it has successfully acquired a 51% controlling stake in Star 26 Capital Inc., a defense acquisition company holding 95% ownership in RIMON. RIMON is a leading Israeli supplier of critical components for the Iron Dome missile defense system, as well as other defense and tactical solutions.
The transaction, finalized on December 15, 2024, involved a total purchase price of $26 million, including cash, a promissory note Nukkleus's common stock, and warrants to purchase additional shares of common stock of Nukkleus. This acquisition also includes an option agreement allowing Nukkleus to acquire the remaining equity in Star 26 at a later date.
With this acquisition, Nukkleus gains control over RIMON's diversified operations, which include two key business lines:
Distribution of Generators, masts and Lighting Solutions: RIMON operates through exclusive distributorship agreements with leading suppliers.
Development of Tactical Vehicles: RIMON designs, engineers, and integrates tactical vehicles, including reconnaissance vehicles, mobile command and control units, and satellite broadcast platforms, serving special defense forces, intelligence agencies, and the Israeli Defense Forces (IDF).
Manny Shalom, the newly appointed CEO of Nukkleus and a seasoned entrepreneur in the security sector, stated "This merger positions Nukkleus at the forefront of a booming defense industry. Our acquisition of Star 26 and RIMON aligns with our strategic pivot to capitalize on opportunities in the defense sector, which has seen rapid growth due to geopolitical shifts in the Middle East and the war in Ukraine. This has resulted in a surge of investments and acquisitions in Israeli defense firms such as PARAGON and PROTEGO, alongside a 120% increase in Israel's defense indices and a 38% rise in similar indices in the US."
He added "RIMON's expertise in critical defense systems, coupled with its established partnerships with leading defense exporters like Rafael and Elbit Systems, strengthens Nukkleus's capabilities in delivering innovative defense solutions."
As part of its expansion strategy, Nukkleus plans to integrate Star 26 operations into its business structure while exploring further growth opportunities. The company will also plans to broaden its activities into other sectors, serving as a Merchant Bank for companies in banking, U.S. real estate, and technology-populated coworking space campus locations, leveraging its financial expertise to seize emerging opportunities in the changing region of the middle east.