TSG, an Israeli company specializing in command-and-control (C2) systems, is accelerating its entry into the fast-growing counter-drone defense market, following a series of deals that signal a strategic shift in its business model.
In a filing to the Tel Aviv Stock Exchange on Monday, the company announced it had signed a binding agreement to acquire Mabat 3D Technologies, while also signing memoranda of understanding to invest in drone company Robotican and to acquire defense manufacturer Production Floor. According to TSG, all three companies align with its strategy to expand its footprint in the defense sector, with a focus on solutions for detecting and countering UAV and drone threats.
In a presentation released alongside its annual results, TSG framed these moves as part of a broader plan to build a comprehensive drone interception system—an integrated solution combining AI-based command-and-control software, connections to radars and sensors, and interceptor and capture drones.
Sensing, effectors, and manufacturing
The acquisition of Mabat adds a sensing and mapping layer to TSG’s capabilities. Based in Herzliya, Mabat specializes in 3D mapping and documentation using LiDAR technologies and provides solutions to defense customers. TSG says these capabilities will support the creation of precise spatial situational awareness, enabling improved detection, analysis, and operational planning in counter-drone systems.
Mabat generated approximately NIS 17.8 million in revenue in 2025, with operating profit of about NIS 4 million. The upfront consideration stands at roughly NIS 14.4 million, with contingent payments that could bring the total deal value to around NIS 45 million.
The planned investment in Robotican adds the effector layer. Under the terms of the MOU, TSG intends to invest $9 million for a 26% stake. Robotican, based in Omer, develops autonomous aerial and ground systems for intelligence and interception missions, including drones designed to capture hostile UAVs.
The move highlights TSG’s adoption of a growing concept in modern warfare: drones intercepting drones. This approach is gaining traction as it offers a more precise and cost-effective response to low-cost threats, reducing reliance on expensive missile-based interception systems.
The third deal, a proposed $5 million acquisition of Production Floor, adds manufacturing and integration capabilities. The Tirat Carmel-based company provides end-to-end production services, including engineering, manufacturing, assembly, and integration of complex systems, primarily for defense customers. This layer is intended to give TSG greater control over delivering fully integrated operational systems—not just software.
The core: TSG’s C2 backbone
At the center of this strategy is TSG’s core expertise in command and control. The company develops systems used for managing national airspace pictures, naval C2, border protection, special operations, and intelligence applications. These systems integrate data from radars, satellites, RF sensors, and other sources, fusing them into a unified real-time operational picture. Among other uses, they support threat trajectory analysis in Israel’s Home Front Command alert system.
In a recent conversation with Techtime, TSG President Pini Yungman described the company’s transition from a provider of core subsystems—primarily C2—to a company aiming to deliver full operational solutions. He said the company is expanding its systems so they not only manage the air picture, but also activate effectors, including interceptor drones. “The company is evolving from managing the air picture to enabling systems that can detect, track, and execute interception as an integral part of the same architecture,” he said.
Yungman also emphasized that one of TSG’s key assets is the data accumulated through its C2 systems, which are embedded in operational environments, including air defense frameworks in Israel. This data includes large volumes of information related to detection, tracking, and interception of threats—particularly UAVs. “The company has a data repository that no other company possesses, built on operational activity and massive volumes of data collected in recent years,” he said, adding that “the systems fuse inputs from multiple sensors, filter noise, and generate accurate predictions—enabling AI to deliver real operational advantage.”
The company’s focus on AI is also reflected in its investor presentation, where it highlights accelerated development of AI capabilities built on its data fusion and C2 expertise, including a dedicated large language model for intelligence and operational systems. The combination of operational data, accumulated experience, and advanced algorithms is presented as a key competitive advantage.
Growth driven by defense momentum
TSG’s strategic push comes on the back of strong financial performance. In 2025, the company reported revenue of approximately NIS 430.3 million, up 33.6% year-over-year. Operating profit reached NIS 37.2 million, net profit totaled NIS 16.3 million, and adjusted EBITDA stood at NIS 63.8 million. The defense segment accounted for NIS 336.5 million, or roughly 78% of total revenue.
The company also highlighted additional business developments in its presentation, including initial deliveries of low-altitude air defense licenses for the U.S. Army, expanded activity in Europe through defense partnerships, entry into markets in Asia and Africa, and new AI-related orders. Together, these moves suggest that TSG sees counter-drone and low-altitude defense not just as a technological direction, but as a major global growth engine.