Ze'ev Dagani Negotiates Sale of Control in Israeli Defense Firm RSL to ION Asset Manager
Ze'ev Dagani, the longtime controlling shareholder (50.3%) and CEO of the small Israeli defense company RSL, is in advanced talks to sell his stake to the private equity fund IPE, part of the asset management giant ION. RSL is currently valued at approximately 100 million shekels, down from about 200 million shekels in 2025, reflecting a 40% drop in its share price over the last three months amid a broader decline in defense stocks. IPE, managed by Lior Hami, is expected to pay a premium of 30% to 40% above the current market price. The fund recently made its first major acquisition by purchasing 50% of Isotest, a company in the aviation products sector, which could create synergies with RSL's business.
RSL develops, manufactures, and markets advanced electronics and computing systems primarily for the defense sector. Its products include HUMS monitoring systems, Muzzle Velocity Radars used by the Israeli Defense Forces, the US military, and the Indian army, as well as advanced control systems for aircraft, drones, and missiles. Key clients include Israel Aerospace Industries, Beit Shemesh Engines, Lockheed Martin, and the US Air Force. Since the Russian invasion of Ukraine in February 2022, RSL's stock surged 285%, far outperforming the Tel Aviv 125 index's 15% rise.
Financially, RSL recorded annual revenues exceeding 31 million shekels since 2022, with net profits ranging from 6 to 16 million shekels. The year 2024 was a record year, with revenues jumping 74% to 54 million shekels and net profit increasing 175% to 16.1 million shekels. However, in 2025, revenues fell to 41.5 million shekels, operating profit dropped to 7 million shekels, and net profit declined to 5.5 million shekels. The downturn was mainly due to a sharp decline in civilian HUMS system sales and reduced MVR sales in Israel and India.
Dagani has been seeking a buyer for about two years while also looking for a successor CEO. In June 2024, he signed a non-binding memorandum of understanding to sell his shares to the Aman Group, controlled by the Pasternak family, but talks ended unsuccessfully in October. In March 2025, after the stock price rose 162% since the failed Aman deal and following new contract wins, Dagani signed another memorandum for a sale, which also fell through within a week. The potential buyer was revealed to be businessman Manny Shalom, CEO of fintech and blockchain company Nukkleus, which shifted toward defense technology in late 2024.
Dagani, aged 82, explained his decision to sell despite the defense sector's stock rally by citing his advanced age and lack of involvement of younger family members in the business. The company’s chairman is Yair Ramati.
