The Israeli government has approved the merger of Elta Systems into Israel Aerospace Industries (IAI), clearing a key regulatory hurdle for the state-owned defense giant’s planned initial public offering.
The consolidation combines IAI’s aerospace manufacturing capabilities with Elta’s electronic warfare and radar technologies, creating a unified entity ahead of its debut on public markets.
8 billion, driven by heightened global demand for defense systems and air defense solutions.
Government Companies Authority valuations place the combined company at approximately 100 billion shekels, equivalent to roughly $2.7 billion.
This valuation follows a significant surge in IAI’s 2025 sales, which reached $7.8 billion, driven by heightened global demand for defense systems and air defense solutions.
The move aligns with broader Israeli government efforts to list its largest state-owned defense contractors on US stock exchanges.
Israel has been evaluating the possibility of listing both IAI and Rafael Advanced Defense Systems to access deeper capital markets and increase transparency.