Elbit Systems Acquires Canadian Autonomous Underwater Vehicle Specialist

Elbit Systems has announced the completion of its acquisition of International Submarine Engineering (ISE), a Canadian company specializing in the development and production of autonomous underwater vehicles (AUVs) and remotely operated robotic systems. The financial terms of the deal were not disclosed, with Elbit Systems stating it is not material to its overall operations. ISE, based in Vancouver, Canada, has over 50 years of experience in underwater robotics, having supplied more than 250 underwater vehicles to clients in over 20 countries for military, marine research, infrastructure inspection, and deep-sea operations.

ISE develops two main types of systems: AUVs that operate independently based on pre-programmed missions, and remotely operated vehicles (ROVs) controlled by an operator using cameras, sensors, and robotic arms. These systems are designed for environments where manned operations are costly or pose significant risks. ISE's technology includes seabed scanning, underwater object detection, intelligence and security support, and underwater docking and charging solutions for autonomous vehicles to extend their operational duration.

For Elbit Systems, this acquisition aims to complement its existing naval warfare capabilities, which include command and control systems, unmanned surface vessels, sonar, electro-optical sensors, communications, and electronic warfare. Integrating ISE's technologies is expected to enable Elbit to offer a more comprehensive solution, encompassing the underwater vehicles themselves and the systems that operate them and analyze their collected data. The focus will be on intelligence gathering and surveillance, mine detection and neutralization, and anti-submarine warfare, areas where unmanned systems offer operational advantages in hazardous environments.

This acquisition is part of Elbit's broader strategy to expand its maritime operations. In February, the company announced a joint venture with German submarine manufacturer TKMS and the Ministry of Defense to establish underwater structure component manufacturing in Israel. The addition of ISE's capabilities further strengthens Elbit's position in underwater robotic platforms. While the acquisition expands Elbit's product portfolio and integration potential for larger maritime projects, the company did not provide details on ISE's revenue, profitability, or order backlog, making it difficult to assess the immediate financial impact beyond technological enhancement.

Elbit Systems currently has a substantial order backlog of approximately $32 billion as of the end of the second quarter of 2026, with quarterly revenues around $2.3 billion. In this context, the ISE acquisition is viewed primarily as a strategic and technological move rather than one expected to significantly alter the company's operational scale in the short term. Bezalel (Booli) Machlis, President and CEO of Elbit Systems, stated that the acquisition is a key step in expanding the company's maritime solutions, integrating ISE's underwater technologies with Elbit's existing capabilities to reinforce its standing as a global provider of comprehensive maritime solutions.