US firms acquire two Israeli defence companies in deals worth $1 billion

Two American corporations have announced the acquisition of Israeli defence and technology firms in transactions totalling around $1 billion, highlighting growing US interest in Israel’s security and emergency-response technologies.

Arizona-based Axon, a developer of technologies for emergency and law enforcement services, has agreed to purchase Israeli start-up Carbyne for $625 million in cash, Caliber.Az reports, citing Israeli media.

Carbyne, founded a decade ago and once backed by former Israeli Prime Minister Ehud Barak, develops advanced command-and-control systems used by emergency services and military forces in the United States, Israel, and Mexico. The company has raised $200 million from investors since its establishment.

In a separate deal, Israeli communications systems supplier Orbit Communications Systems will merge with Kratos Defence & Security Solutions, a US defence technology company.

The agreement values Orbit at $356.3 million, representing a 21 per cent premium over its closing share price on the Tel Aviv Stock Exchange.

Both transactions remain subject to regulatory approval in Israel and the United States.

By Aghakazim Guliyev