Israeli defense firm TSG expands into anti-drone systems with acquisitions
Series of deals aims to build an AI-powered, end-to-end solution for low-altitude threats.
Defense against drone threats continues to dominate the agenda of the defense industry. On Monday, TSG IT Advanced Systems, controlled by Israel Aerospace Industries and Formula Systems, announced the acquisition of two companies and an investment in a third, as part of a broader effort to develop an integrated system capable of detecting, identifying, and neutralizing low-altitude aerial threats.
TSG will acquire Mabat, which specializes in mapping, 3D documentation, and measurement technologies using laser-based distance sensing, for NIS 14.5 million (approximately $4.65 million). The deal also includes potential earn-out payments of up to NIS 45 million ($14.5M), subject to operating profit targets and revenue collection milestones. The company said Mabat’s capabilities will enhance its UAV interception systems by enabling the creation of a precise spatial picture to support detection, analysis, and operational planning.
At the same time, TSG signed two non-binding memoranda of understanding. The first includes a $9 million investment in RoboTiCan in exchange for a 26% stake. Robotican develops autonomous drones and robotic systems for aerial and ground missions. The second outlines a $5 million investment to acquire full ownership of Production Floor, which designs, manufactures, and integrates systems for defense clients.
According to TSG, these moves are intended to create complementary capabilities for an end-to-end solution against drone threats. Meir Paderski, the company’s deputy CEO and CFO, said the technologies from the acquired and partner companies will be integrated into a unified defense system based on command-and-control infrastructure and artificial intelligence. This system will include autonomous drones capable of intercepting hostile drones or disrupting their trajectories.
“We estimate that the threat posed by UAVs and drones will remain highly relevant in the coming years, and we are directing our efforts toward global markets,” Paderski said.
Until now, TSG’s international activity has largely been indirect, through its integration into systems sold by larger defense exporters. However, rising global demand, particularly in Europe, amid the war between Russia and Ukraine and the increasing use of drones, presents new opportunities for direct expansion.
The company announced the acquisitions alongside its 2025 financial results. TSG reported record revenue of NIS 430 million, up 34% year-over-year. Operating profit rose 39% to NIS 37 million, while net profit increased 48% to NIS 35 million.
TSG is led by president Pini Yungman, former head of the air defense division at Rafael Advanced Defense Systems and a key figure in the development of the Iron Dome and David’s Sling systems, and CEO Arik Kilman.
