The Israeli government approved the merger of Elta into Israel Aerospace Industries (IAI) on Sunday, ahead of a potential listing of the company’s IPO.
Elta, a defense tech company and an IAI subsidiary that operates in Ashdod and Beersheba, specializes in radar, intelligence systems, and unmanned vehicles.
According to the Government Companies Authority’s valuations, IAI could be listed at a valuation of NIS 100 billion, following a surge in 2025 sales to $7.8 billion, a $415 million net profit, and an order backlog of $29 billion.
The company has about 15,000 employees.
While the Government Companies Authority is examining the possibility of listing IAI on the Nasdaq exchange in the US as well as the Tel Aviv Stock Exchange, preparations for the IPO continue within the company.
Elta’s operations, assets, rights, liabilities to fold into IAI
Following the merger, all of Elta’s operations, assets, rights, and liabilities will be fully transferred to IAI. Elta will continue as a division bearing its name and will cease to exist as a separate legal entity.
According to the company, this will eliminate unnecessary bureaucracy that complicates operations and slows down the approval of deals and sales proposals.
IAI Chairman Boaz Levy stated, “The merger of Elta into IAI is a natural and necessary step, completing the strategic move we have been leading in recent years to turn IAI into a single company. Elta is a central pillar of IAI and so it will remain.
“Its merger strengthens the company’s ability to operate as a more unified, efficient, and flexible firm, and to provide a faster, higher-quality response to our customers in Israel and around the world.
“It should be noted that the entire move is being carried out in full coordination with employee representatives, and is not expected to include material changes to the organizational structure or affect Elta’s workers.”
