The $14 million acquisition adds cutting-edge defense AI, advanced simulation software, 3D engines, and operational systems to Nukkleus’ A&D portfolio
Nukkleus, a strategic acquirer and developer of high-growth businesses in the Aerospace and Defense (A&D) industry, announced the execution and delivery of an agreement to purchase Tiltan Software Engineering Ltd., a leading Israeli developer of synthetic defense data generation, GPS-denied navigation solutions, and advanced System in Loop/Hardware in Loop simulator systems, for $14 million.
Militaries worldwide are increasingly incorporating simulation platforms, and GPS-denied navigation systems into their operations, enabling troops to predict enemy movements, ensure secure navigation in contested environments, and deliver precise battlefield intelligence while reducing the risk of unintended civilian harm. In fact, the genAI sector for the A&D industry is expected to grow from $28 billion today to $65.5 billion in 2034, while the anti-GPS jamming market is expected to more than double by 2032.
To this end, Tiltan brings over 30 years of experience delivering mission-critical solutions to the A&D industry. Its technology portfolio includes AI-driven simulation platforms for autonomous systems, synthetic data generation for machine learning, GPS-denied navigation systems for drones and unmanned vehicles, and immersive 3D environments for complex operational testing. Tiltan serves top-tier clients including Israel Aerospace Industries, Elbit Systems, and Rafael Advanced Defense Systems, and has received multiple innovation and excellence awards from the Israeli Defense Ministry.
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Meanwhile, Nukkleus specializes in acquiring and transforming high-potential A&D businesses into market leaders, leveraging operational expertise, strategic capital, and advanced technological insights to modernize offerings and expand market reach.
“This partnership marks a major milestone in Nukkleus’ expansion into high value aerospace and defense technologies,” said Menny Shalom, CEO of Nukkleus. “Tiltan’s long-standing track record, award-winning solutions, and proven success make them the ideal partner for us. Their advanced AI-powered simulation platforms,GPS-denied navigation systems, and other groundbreaking products position Nukkleus at the forefront of the global defense and aerospace market.”
The $14 million purchase price to be paid by Nukkleus will be paid via a combination of cash and shares. is to be paid over 6 months from the closing, and is secured by the shares of Tiltan. The cash portion is to be paid over a period of 6 months from the closing and is secured by a note that would be issued by Nukkleus. At closing, Nukkleus will issue shares in escrow to secure the final cash payment to the seller, with the balance of the shares being returned to Nukkleus if the market price of the shares is higher than the value on the closing date.
In addition, at closing, the Company will deposit into escrow shares of Nukkleus common stock to secure the additional payment due on the 180th day after closing (the “Settlement Date”). On the Settlement Date, the Shareholder will receive from escrow the number of shares equal to 25% of the Purchase Price, with the number of shares to be based on the market price on the Settlement Date.
The acquisition is subject to customary closing conditions including receipt of PCAOB audited financial statements of Tiltan and the receipt of required regulatory approvals including notification to the Israeli Defense Export Controls Agency.
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