Defense simulator maker Bagira targets $800 million IPO as sector rally accelerates
Veteran Israeli defense firm joins a growing wave of listings amid surging military demand.
The surge in defense company stocks over the past year is bringing another defense player to Israel’s capital market. Calcalist has learned that Bagira Systems, owned by the Mizrachi family, is advancing plans for an initial public offering (IPO) on the Tel Aviv Stock Exchange at a valuation of NIS 2.5 billion (approximately $800 million).
Bagira designs, develops, and operates training systems and simulators intended to improve military combat readiness. According to the company, its simulators are used by hundreds of thousands of soldiers in around 40 countries worldwide. In recent weeks, company representatives have been holding meetings with underwriters in the local capital market, as part of preparations for the offering and the selection of a lead underwriter.
Founded in 1995, Bagira is named after the Black Panther character from Rudyard Kipling’s The Jungle Book, and its logo features a tiger’s paw. The company is considered a veteran and well-established player in Israel’s defense industry. Over the years, it has supplied the Israeli security establishment with a wide range of simulators designed to replicate various operational scenarios.
Industry estimates suggest that the timing of Bagira’s move toward the capital market is not coincidental. Over the past year, the company reportedly sold services to Israel’s security system totaling approximately NIS 400 million (about $125 million). Bagira currently operates close to 50 training facilities, primarily in southern Israel, and employs around 400 staff members who train IDF units.
Bagira’s simulators typically consist of large-scale screen systems in front of which soldiers train individually or in units. These systems enable preparation for a wide range of combat scenarios, including fighting in urban environments and open terrain. The company also supplies mobile training systems, designed to simulate dynamic battlefield conditions in open areas.
The local military simulator industry is characterized by large, long-term contracts that can reach hundreds of millions of shekels, covering the construction of training facilities, equipment supply, and ongoing maintenance. Despite strong demand, particularly against the backdrop of the Swords of Iron war, the market is relatively concentrated, and in some cases tenders are conducted with a single supplier.
One of Bagira’s main competitors in Israel is Elbit Systems, which also develops combat simulation technologies. Internationally, Bagira competes with companies such as France’s Thales and Germany’s Rheinmetall.
The scale of contracts in the sector was illustrated by a petition Bagira filed in January 2023 with the Tel Aviv District Court. The company sought to cancel a Ministry of Defense agreement with Elbit Systems to establish three training centers for the IDF’s armored corps, a deal valued at approximately NIS 400 million ($125 million).
In its petition, Bagira argued that the Ministry of Defense had engaged Elbit as a sole supplier without a tender or competitive process, thereby preventing Bagira from competing. Under the agreement between the Defense Procurement Directorate at the Ministry of Defense and Elbit, the contract spans 18 years: the first three years for construction of the training centers, followed by 15 years of operation and maintenance.
Beyond Israel, Bagira plans to highlight the European market as a key growth engine during its roadshow to institutional investors. The company is active in the Netherlands, Germany, the United Kingdom, and the Czech Republic, where it operates a production line. These activities are conducted through subsidiaries following a corporate reorganization. Against the backdrop of rising European defense budgets driven by the war in Ukraine and concerns over Russia, Bagira expects its European operations to expand. The company is also an official supplier to NATO.
Bagira Systems is wholly owned by Bagira Holdings, controlled by the Mizrachi family. The largest shareholder is Arie Mizrachi, who holds 50% of the company. Mizrachi is a former chairman of IMI, former chief artillery officer, and former director general of the Ministry of Construction and Housing. His son, Yaron Mizrachi, serves as CEO and holds 25% of the shares, while his other son, Sagi Mizrachi, owns the remaining 25%. Arie Mizrachi also owns Armaz, an engineering and security consultancy that has provided services in Latin America, among other regions. Maj. Gen. (res.) Yoel Strick, former commander of the Northern Command and former head of the Ground Forces, serves as president of Bagira Israel.
Speaking with Calcalist, CEO Yaron Mizrachi said that since the outbreak of the October 7 war and the sharp rise in demand for the company’s products, Bagira’s workforce has expanded by around 80% to approximately 410 employees, with plans to hire dozens more over the coming year. He added that the company relocated its headquarters from Holon to Modi’in about a year ago.
Mizrachi noted that “many armies that have been investing heavily in advanced weapons systems are simultaneously increasing their demand for training solutions. Simulators allow forces to prepare for a wide range of combat scenarios while responding to evolving threats.” Regarding a potential IPO, he said: “We are constantly examining our options and do not rule out any path. We believe we are an attractive company. When we decide to go public, we will do so.”
The IPO discussions come amid a sharp rally in defense stocks. Defense industry indices in the U.S. and Israel have risen by roughly 59% since the start of the year. Shares of Elbit Systems, for example, are up around 90% year-to-date and are currently valued at approximately NIS 84 billion ($26.25 billion). NextVision, whose shares have surged about 248% since the beginning of the year, is now valued at roughly NIS 17.8 billion ($5.56 billion).
The broader wave of defense-sector IPOs also includes Plasan, owned by Kibbutz Sasa. Plasan initially sought to go public at a valuation of approximately NIS 1.25 billion ($390 million), but is now pursuing an alternative plan to merge part of its operations with Carmochrome of Karmiel. The merged entity is expected to list in 2026 at an estimated valuation of NIS 1 billion ($312.5 million). Plasan specializes in protection solutions for military and civilian vehicles, including armored platforms such as the Merkava tank and the Eitan armored personnel carrier, as well as protection systems for naval vessels and aircraft.
