Emiratis to acquire 30% stake in Israeli security company

Israel’s Ministry of Defense must grant permission for the deal to move forward.

By World Israel News Staff

A major military technology firm in the United Arab Emirates is gearing up to purchase a large stake in an Israeli security company, illustrating the growing defense-focused ties between the UAE and the Jewish state.

The EDGE Group, an Emirati technology and defense conglomerate, is expected to pay more than $10 million for 30 percent of Israeli company Third Eye Systems, which manufactures smart cameras for detecting UAVs and drones.

The outline for the deal would see EDGE Group purchase the shares; then the two companies would establish a joint venture, according to a report from Hebrew-language outlet Walla.

In that new company, which would focus on electrical optical identification systems, EDGE Group would invest an additional $12 million and hold a controlling 51 percent stake in the company.

Forty-three percent of the new venture would be held by Third Eye Systems, with an undisclosed body holding the remaining six percent.

However, due to the sensitive nature of the military technology included in the agreement, Israel’s Ministry of Defense must grant permission for the deal to move forward.

Third Eye Systems is chaired by retired Major General Didi Yaari, former commander of the Israeli Navy and the ex-CEO of Rafael, Israel’s most prominent defense manufacturing company. Its clients include the Ministry of Defense, Israel Aerospace Industries, and Elbit Systems.

Currently, Third Eye Systems is traded on the Tel Aviv Stock Exchange at a valuation of 84 million shekels ($23 million), with its stock surging 23 percent following the announcement of the potential deal with EDGE Group, Walla reported.

One of the world’s top manufacturers and suppliers of precision guided munitions, the EDGE Group has made a number of high-profile investments in other defense companies in recent years.

In 2021, the EDGE Group signed an agreement with Israel Aerospace Industries to manufacture autonomous vessels for military and commercial use.