Following the news of a strategic acquisition, shares of Nukkleus Inc. (NASDAQ: NUKK) have increased by 681.29% to $10.88, indicating a notable increase in the company’s stock value. NUKK has effectively purchased a 51% controlling interest in Star 26 Capital Inc., which owns 95% of Israeli defense supplier RIMON. With this acquisition, the company is positioned as a major force in the defense sector.
Important Information about the Purchase
The $26 million deal was finalized by Nukkleus on December 15, 2024. Cash, a promissory note, Nukkleus’s common shares, and warrants for additional stock purchases were all used in the transaction. Furthermore, the company obtained an option to later purchase the remaining Star 26 stock.
This acquisition grants Nukkleus control over RIMON’s diversified operations, which include the distribution of critical defense components and the development of advanced tactical vehicles.
RIMON’s Defense Expertise and Market Impact
RIMON is a top provider of tactical defense solutions and parts for the Iron Dome missile defense system. Its key business lines include the distribution of generators, masts, and lighting solutions, alongside the development of specialized vehicles such as reconnaissance and mobile command units.
With exclusive agreements with suppliers like Rafael and Elbit Systems, RIMON is deeply embedded in the Israeli defense sector. Nukkleus’s acquisition of RIMON enhances its presence in the booming defense industry, especially as geopolitical tensions in the Middle East and the ongoing conflict in Ukraine fuel growth in the sector.
Strategic Vision and Future Expansion Plans
Nukkleus wants to investigate more expansion prospects and incorporate Star 26 Capital’s operations into its framework. Beyond the defense sector, the company plans to expand into U.S. real estate, technology, and banking sectors.
Its broader strategy includes serving as a merchant bank for companies in these industries, leveraging its financial expertise to capitalize on emerging opportunities in the Middle East. The combined entity is poised to acquire controlling interests in medium-sized firms, offering financing and global business development prospects, particularly in the Israeli and U.S. markets.