Israeli Government Approves Elta-Air Industries Merger Ahead of Planned IPO

The Israeli government has approved the merger of Elta Systems into Israel Aerospace Industries (IAI) as part of preparations for IAI's planned dual listing on the Nasdaq and Tel Aviv stock exchanges. The merger consolidates Elta's operations, assets, rights, and liabilities fully into IAI, with Elta continuing as a division under its own name but ceasing to exist as a separate legal entity. This move aims to reduce bureaucratic hurdles that have slowed deal approvals and sales proposals.

Elta, a subsidiary of IAI based in Ashdod and Beersheba, specializes in radars, intelligence systems, and unmanned vehicles. IAI currently employs about 15,000 people. According to valuations by the Government Companies Authority, IAI could be valued at around 100 billion shekels following a projected sales increase to $7.8 billion in 2025, with a net profit of $415 million and an order backlog of $29 billion.

Boaz Levy, Chairman of IAI, described the merger as a natural and strategic step to unify the company and enhance its efficiency and flexibility. He emphasized that the process is fully coordinated with employee representatives and is not expected to cause significant organizational changes or affect Elta's workforce.