Counter-UAS

ParaZero Deepens Defense Shift with XTEND Partnership

Posted on by Techtime

[Image credit: ParaZero]

By Yohai Schwiger

A collaboration between two Israeli drone companies is targeting the defense market: ParaZero has announced a strategic partnership with XTEND, under which XTEND will integrate ParaZero’s Net Pod into its Scorpio 1000 interceptor drone. The system deploys a net designed to capture hostile drones and is embedded as the interception mechanism within XTEND’s platform.

The combination of XTEND’s fast, semi-autonomous drone with ParaZero’s capture capability is designed to deliver a non-destructive counter-drone solution. Instead of destroying a target, the interceptor drone pursues it and captures it using a net. This so-called “soft-kill” approach is particularly suited for urban environments and sensitive infrastructure, where kinetic interception could cause collateral damage.

First order likely tied to partnership

The Net Pod is a compact interception module that includes a deployable net and a rapid-launch mechanism. It operates without explosives, using pressurized gas to propel the net forward. Upon deployment, the net opens within a fraction of a second, with weighted edges allowing it to spread and envelop the target drone. The net entangles the propellers, disrupting flight and causing the drone to lose lift and fall. Its lightweight, modular design enables integration across multiple platforms, including interceptor drones, without significantly impacting performance.

The partnership was announced in late March. Just days later, ParaZero reported an order worth over $650,000 from a “Tier-1 international drone interception company,” including a commitment to purchase at least 2,000 Net Pod units. While the customer was not disclosed, the timing, product type, and reference to platform integration strongly suggest XTEND — potentially marking the first commercial execution of the partnership.

The Net Pod is part of ParaZero’s broader DefendAir system, a multi-layered counter-drone solution that includes ground-based detection (such as radar and sensors), command-and-control systems, interceptor drones, and handheld tools. Within the XTEND partnership, ParaZero supplies only the Net Pod component, delivered under an OEM model that allows integration into third-party platforms.

From civilian safety to defense growth

The latest move reflects a broader transformation at ParaZero. Founded in 2014, the company initially focused on drone safety systems, developing parachute solutions (SafeAir) to prevent crashes in populated areas. It later expanded into precision airdrop systems (DropAir). Today, ParaZero is increasingly focused on the defense market, particularly counter-drone technologies.

In a recent shareholder letter, the company’s CEO described 2025 as a “transformational year,” stating that ParaZero is “positioning itself as a Tier-1 defense provider and focusing on execution and sales in the defense market.” Financial results reflect a company in transition: revenue reached approximately $1.05 million in 2025 (up about 12%), while net losses widened and operating expenses increased significantly. At the same time, ParaZero reported approximately $1.28 million in orders early in 2026 — exceeding its full-year 2025 revenue.

In recent months, ParaZero has announced multiple business developments, including partnerships with drone companies, orders from defense customers in Israel and abroad, distribution agreements in Europe, and live demonstrations for NATO-related stakeholders — all part of an effort to establish a foothold in the growing counter-UAS market.

ParaZero is listed on the NASDAQ with a market capitalization of roughly $20 million, reflecting its early-stage position. The company went public in July 2023 at a valuation of around $50 million, and its stock has since lost nearly 70% of its value.

TSG Goes on Acquisition Spree to Build End-to-End Drone Interception System

Posted on by Techtime

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.