T3 Defense Takes Controlling Stake in ITS Through Debt Conversion

18 February, 2026

T3 holds an option to acquire the remainder for up to NIS 35 million. The deal adds production and motion-control capabilities to a portfolio spanning AI, navigation and energy

T3 Defense, traded on Nasdaq under the ticker DFNS and formerly known as Nukkleus, announced it has taken control of Israeli company Industrial Techno-Logic Solutions (ITS). Under the agreement, T3 received 51% of the company by converting an existing loan of approximately NIS 10 million into equity, with no additional cash consideration and no new share issuance. The company also holds an option to purchase the remaining 49% within three years at a price ranging from roughly NIS 25 million to NIS 35 million, depending on the timing of exercise. Following the transaction, T3 estimates combined annual revenue of about $24–26 million.

The structure reflects a formalization of ownership in a company previously financed by T3 rather than a conventional cash acquisition. The deal joins a series of purchases executed as part of the firm’s strategy to assemble a defense-industrial platform.

ITS, based in Kfar Saba, operates as a turnkey engineering and manufacturing contractor, guiding products from development to serial production. The company designs and manufactures electro-mechanical systems, production lines and custom machinery, while managing supply chains and integration for clients across defense, space, medical equipment and robotics. Its core focus is the transition from prototype to scalable production — widely regarded as a bottleneck in defense and industrial programs.

ITS wholly owns Positech, founded in Haifa in 2001, which develops precision motion-control and stabilization systems integrated into radars, sensors and mission payloads across land, air and naval platforms. The activity represents a clear defense subsystem layer, providing mechanical-electronic accuracy within sensing and weapon systems.

T3 Defense itself is undergoing a rapid strategic shift. The U.S.-founded holding company rebranded from Nukkleus in February 2026 to sharpen its focus on acquiring and operating defense companies embedded in national-security supply chains. As part of this transition, it secured an equity financing framework of up to $250 million to support further acquisitions.

Earlier moves included acquiring control of Star 26 Capital, which owns Rimon — a supplier of energy systems and components integrated into advanced defense platforms — and purchasing Israeli company Teletan, which develops simulation, synthetic data and GPS-denied navigation solutions for defense industries.

Taken together, the acquisitions form an emerging industrial puzzle: Teletan provides algorithmic and simulation capabilities, Rimon contributes energy infrastructure, Positech supplies precision subsystems, and ITS enables the transition to mass production. Rather than developing a single weapons platform, the company is assembling an industrial base positioned beneath prime contractors — companies that enable defense systems to be manufactured at scale.

The ITS acquisition adds the production-readiness layer, a stage where many defense programs stall due to certification, quality and delivery constraints. T3 Defense is thus advancing a model of consolidating deep-tier defense suppliers under one group to create a continuous engineering-industrial capability chain.

CEO Mani Shalom said the transaction “strengthens our strategy to expand manufacturing capacity at critical bottlenecks in the defense industry. ITS operates at the intersection of advanced engineering and scaled production — an area where execution accuracy and supply discipline directly affect long-term defense programs.”

Share via Whatsapp

Posted in: News

Posted in tags: ITS , Mani Shalom , Positech , T3 Defense

Other articles you might like

Four-Minute Heart Attack Risk Assessment: AccuLine Completes Clinical Trial in Israel

InnovizSMART Security System Deployed at Critical Infrastructure Sites in Israel

SolarEdge Ships US.-Made Inverters to Europe