Elron and Rafael to Commit Up to $300 Million for Acquisitions of Defense and Dual-Use Technology Companies

1 June, 2026

The program, which will be executed through RDC over a period of approximately three years, is aimed at acquiring controlling stakes in companies with both defense and civilian applications

Elron Ventures, controlled by the Arieli Group, announced on Monday that its board of directors has approved, in principle, an investment program of up to $300 million through RDC, the joint venture owned by Elron and Rafael Advanced Defense Systems. The initiative is designed to support the mergers and acquisitions strategy that Elron introduced in March and will focus on acquiring controlling interests in technology companies serving both defense and commercial markets.

Under the plan, Elron and Rafael are expected to commit up to $300 million over approximately three years, with each party contributing an equal share. The initial allocation is expected to reach up to $100 million, with Elron and Rafael each providing up to $50 million. The program remains subject to approval by Rafael’s board of directors and the completion of the required financing arrangements.

The move marks a significant expansion of RDC’s activities. Until now, the partnership has primarily operated through venture capital investments, startup creation, and the commercialization of technologies developed within Rafael. Under the new strategy, Elron and Rafael intend to complement these activities by acquiring controlling stakes in established companies, with the goal of building a portfolio of growth-stage businesses in defense technology, cybersecurity, deep-tech, and artificial intelligence.

According to the company, rising defense budgets worldwide and shifting geopolitical dynamics have created growing demand for technologies that serve both military and civilian markets. Elron believes that combining Rafael’s technological and operational expertise with Elron’s experience in investing in and scaling technology companies could create a new growth engine for both partners.

In a separate announcement, Elron said it is exploring the possibility of issuing a public bond offering, and potentially warrants as well, to finance its share of the investment program. The size, structure, and timing of any such offering have not yet been determined.

[Photo credit: Shay Ben Efrayim]

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Posted in tags: Elron Ventures

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