Valorix Acquires Electronic Warfare Firm for $75 Million to Expand Defense Portfolio
Valorix, formerly Aquarius Engines, has signed a memorandum of understanding to acquire a controlling 70% stake in Electronic Warfare Ltd. for approximately $75 million. The deal includes a $40.6 million payment for shares and an additional $12 million investment directly into the company to support development and accelerate entry into new international markets. An earn-out mechanism is also part of the agreement, contingent on meeting performance targets.
Founded in 2014, Electronic Warfare Ltd. specializes in developing and manufacturing systems for drone disruption, communication jamming, and signal interference. Its product portfolio includes over ten solutions such as drone detection and neutralization systems and radio jamming technologies up to 27 GHz, designed to counter drones, explosives, and other threats. The company reported revenues of about 27 million shekels in 2025, a 24% increase from 2024, but its EBITDA declined by 31% to 6.8 million shekels. It projects 2026 revenues of 90 million shekels and EBITDA of 25.2 million shekels.
Valorix CEO Roy Bergil described the acquisition as a strategic step toward building a robust Israeli defense group combining proven technology, operational experience, and existing customers. He emphasized the growing need for integrated solutions addressing threats from drones and critical infrastructure, highlighting Valorix’s focus on air capabilities, electronic warfare, detection, jamming, command and control, and operational response.
Valorix’s transition from its original business in engine manufacturing follows significant financial losses and operational challenges. The company, which went public in late 2020 with a valuation near one billion shekels, struggled to generate meaningful revenue and reported a cumulative loss of $123 million. In December, it adopted a new strategy focusing on defense and security sectors, aiming for sustainable growth and profitability. Earlier this year, Valorix acquired a 70% stake in drone company Aerosol for 34 million shekels, despite a missile strike damaging Aerosol’s factory in Petah Tikva in March. The company has since restored production at a new facility and received 7.2 million shekels in compensation for damages.
Valorix’s shares have risen over 70% this year, currently valued at about 143 million shekels. The company recently secured a 52% controlling stake by investor Alexander Chernilovsky and raised 19.5 million shekels through a private institutional offering, signaling a clear focus on expanding its drone and electronic warfare capabilities.
