Nukkleus Inc. Enters $28 Billion Defense AI Market With Proposed Acquisition of Tiltan Software Engineering Ltd.
NEW YORK and TEL AVIV, Israel, Sept. 02, 2025 (GLOBE NEWSWIRE) -- Nukkleus Inc. (NASDAQ:NUKK), a strategic acquirer and developer of high-growth businesses in the Aerospace and Defense (A&D) industry, today announced the execution and delivery of an agreement to purchase Tiltan Software Engineering Ltd., a leading Israeli developer of synthetic defense data generation, GPS-denied navigation solutions, and advanced System in Loop/Hardware in Loop simulator systems, for $14 million.
Militaries worldwide are increasingly incorporating simulation platforms, and GPS-denied navigation systems into their operations, enabling troops to predict enemy movements, ensure secure navigation in contested environments, and deliver precise battlefield intelligence while reducing the risk of unintended civilian harm. In fact, the genAI sector for the A&D industry is expected to grow from $28 billion today to $65.5 billion in 2034, while the anti-GPS jamming market is expected to more than double by 2032.
To this end, Tiltan brings over 30 years of experience delivering mission-critical solutions to the A&D industry. Its technology portfolio includes AI-driven simulation platforms for autonomous systems, synthetic data generation for machine learning, GPS-denied navigation systems for drones and unmanned vehicles, and immersive 3D environments for complex operational testing. Tiltan serves top-tier clients including Israel Aerospace Industries, Elbit Systems, and Rafael Advanced Defense Systems, and has received multiple innovation and excellence awards from the Israeli Defense Ministry.
Meanwhile, Nukkleus specializes in acquiring and transforming high-potential A&D businesses into market leaders, leveraging operational expertise, strategic capital, and advanced technological insights to modernize offerings and expand market reach.
"This partnership marks a major milestone in Nukkleus' expansion into high value aerospace and defense technologies," said Menny Shalom, CEO of Nukkleus. "Tiltan's long-standing track record, award-winning solutions, and proven success make them the ideal partner for us. Their advanced AI-powered simulation platforms,GPS-denied navigation systems, and other groundbreaking products position Nukkleus at the forefront of the global defense and aerospace market."
The $14 million purchase price to be paid by Nukkleus will be paid via a combination of cash and shares. is to be paid over 6 months from the closing, and is secured by the shares of Tiltan. The cash portion is to be paid over a period of 6 months from the closing and is secured by a note that would be issued by Nukkleus. At closing, Nukkleus will issue shares in escrow to secure the final cash payment to the seller, with the balance of the shares being returned to Nukkleus if the market price of the shares is higher than the value on the closing date.
In addition, at closing, the Company will deposit into escrow shares of Nukkleus common stock to secure the additional payment due on the 180th day after closing (the "Settlement Date"). On the Settlement Date, the Shareholder will receive from escrow the number of shares equal to 25% of the Purchase Price, with the number of shares to be based on the market price on the Settlement Date.
The acquisition is subject to customary closing conditions including receipt of PCAOB audited financial statements of Tiltan and the receipt of required regulatory approvals including notification to the Israeli Defense Export Controls Agency.
About Nukkleus Inc.
Nukkleus Inc. (NASDAQ:NUKK) focuses on acquiring and scaling mission-critical suppliers across the defense, aerospace, and advanced manufacturing sectors. Nukkleus targets Tier 2 and Tier 3 companies that form the industrial backbone of national security infrastructure in the US, Israel and Europe. Through its proprietary capital model, Nukkleus integrates operational capabilities, financial discipline, and long-term vision to modernize and expand strategic suppliers—supporting dual-use innovation and resilient supply chains.
The company's portfolio approach combines organic growth with disciplined M&A, enabling transformational scale and positioning Nukkleus at the core of 21st-century defense industrial strategy.
About Tiltan Software Engineering Ltd.
Tiltan Software Engineering Ltd. is a leading Israeli provider of advanced defense and aerospace solutions with over 30 years of experience. Specializing in AI-driven simulation, synthetic data, 3D engines, operational center systems, and GPS-denied navigation technologies, Tiltan serves top-tier clients including Israel Aerospace Industries, Elbit Systems, and Rafael Advanced Defense Systems. The company has received multiple awards from the Israeli Defense Ministry for its innovative solutions.
Forward-Looking Statements
This press release contains forward-looking statements which are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts are "forward-looking statements" within the meaning of federal securities laws. In some cases, you can identify forward-looking statements by terminology such as "proposed", "will," "would," "expect," "intend," "plan," "objective," or comparable terminology referencing future events, conditions or circumstances, or the negative of such terms. Although Nukkleus believes that it has a reasonable basis for the forward-looking statements contained in this press release, they are based on management's current beliefs and expectations about future events and circumstances and are subject to risks and uncertainties including the ability to complete the transaction with Tiltan and its shareholder, and the market adoption of defense technologies, all of which are difficult to predict and many of which are beyond the Company's control. Risk factors described under "Risk Factors" in Nukkleus' most recently filed annual report on Form 10-K, as updated from time to time in its quarterly reports on Form 10-Q and other filings with the Securities and Exchange Commission, may cause actual results, performance or achievements to differ materially from those expressed or implied by forward-looking statements in this press release. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they were made. Nukkleus undertakes no obligation to update any forward-looking statement contained in this press release to reflect events that occur or circumstances that exist after the date of this press release, except as required by law.
For more information, please contact:
Investor Relations (US)
Lena Cati
Tel: +1 212 836-9611
[email protected]
Val Ferraro
Tel: +1 212 836-9612
[email protected]
