Israeli Drone Detection Firm Thirdeye Jumps 17% After UAE EDGE Group Deal
Key Points
- 1Thirdeye's stock jumped 17% on the Tel Aviv Stock Exchange following the announcement of a $10 million investment from UAE-based EDGE Group for a 30% stake.
- 2The deal includes an additional $12 million investment to establish a joint venture (JV) for global development and marketing of electro-optical drone detection systems.
- 3The transaction is pending regulatory approval, including from Israel's Ministry of Defense, and reflects growing Israel-UAE defense cooperation under the Abraham Accords.
- 4The investment capitalizes on the massive global counter-UAS market, which is projected to grow at a CAGR of up to 25.5% through 2032, driven by military and critical infrastructure needs.
Thirdeye, an Israeli developer of electro-optical systems for drone detection, saw its stock surge 17% in Tel Aviv Stock Exchange trading on Monday.
The sharp rise followed the company’s announcement regarding a major investment from the UAE-based EDGE Group. This jump contributed to a 70% gain for the stock over the preceding three months.
Strategic Investment Details
The Thirdeye EDGE Group deal centers on a $10 million investment. This investment secures the advanced technology and defense conglomerate a 30% stake in the Israeli firm. The transaction is still subject to necessary regulatory approvals, including from Israel's Ministry of Defense.
Beyond the initial stake, the agreement includes establishing a joint venture (JV). EDGE Group will invest an additional $12 million into this new entity. The JV aims to develop, commercialize, and market electro-optical detection systems worldwide.
EDGE will hold a 51% equity share in the joint venture. Thirdeye will retain 43%, with a third party holding the remaining 6%. The Israeli company stated it will not have control of the JV. The joint venture will receive a license to use Thirdeye’s relevant intellectual property.
EDGE Group President Rodrigo Torres highlighted the strategic value of the partnership. He noted that Thirdeye’s solutions offer an important layer of protection. This is specifically in the field of unmanned aerial vehicles detection.
Riding the Counter-UAS Market Wave
Thirdeye’s market value is currently 161 million shekels. The company is benefiting from a global demand for drone solutions. This demand has intensified due to recent conflicts, including the Russia-Ukraine war. The threat became more acute during the Swords of Iron war, where the company's systems first entered operational use.
The global Counter-Unmanned Aerial System (C-UAS) market is expanding rapidly. It is projected to grow at a robust Compound Annual Growth Rate (CAGR) of up to 25.5% through 2032.
This growth is driven by the increasing use of drones. Drones pose threats to military, homeland security, and commercial assets. The commercial sector, including airports and critical infrastructure, is a rapidly expanding segment.
Thirdeye specializes in AI-enabled drone detection systems. These systems are used by the Israeli Defense Forces (IDF). They include ground-based sky-facing systems. They also offer specialized drone-mounted observation systems for intelligence gathering.
EDGE Group's Global Defense Ambition
EDGE Group is a state-owned defense technology conglomerate from the United Arab Emirates. It was founded in November 2019 and is based in Abu Dhabi. The group is ranked among the world’s top 25 defense suppliers.
EDGE operates in 140 countries and boasts an order backlog of $12.8 billion. The group focuses on developing advanced battlefield technology. This includes unmanned systems, electronic warfare, and precision weapons. This investment in Thirdeye marks a significant step in the growing Israel-UAE defense cooperation following the Abraham Accords.
This trend of strategic partnerships is crucial for global security. It allows for the rapid development of counter-drone technologies. For more insights into this sector, visit commercial aviation news.
Broader Market Context
Thirdeye was not the only defense-related stock to see gains on Monday. Other defense stocks also posted sharp increases. For example, Elbit Systems gained 7.5%. NextVision climbed 5.5% and Arit Industries rose 9.5%. This movement underscores the strong investor confidence in the defense and aerospace technology sector, which is critical for global security. Major aerospace players like Airbus and global carriers such as Emirates are closely watching the development of C-UAS regulations, which are often guided by bodies like EASA.
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