Israeli defense firm Thirdeye partners with Abu Dhabi’s Edge Defense Group
Israeli defense firm Thirdeye partners with Abu Dhabi’s Edge Defense Group
$10.3 million deal includes a joint venture to revolutionize drone detection systems.
Thirdeye, a defense company specializing in systems for identifying drones and other targets, has announced a deal with an international company from Abu Dhabi. The Emirati Edge Defense Group will acquire 30% of Thirdeye's shares for $10.3 million, and the two companies will establish a joint venture. Following the announcement, Thirdeye's stock surged 21% on the Tel Aviv Stock Exchange and has risen 86% since the start of the war, bringing its market value to NIS 100 million (approximately $28M).
Thirdeye plans to convene a special shareholders' meeting to approve the terms of the deal and the joint venture with the Emirati group. Under the agreement, the Emirati group will hold a 51% stake in the venture, Thirdeye will own 43%, and a third party will hold the remaining 6%.
The joint venture will focus on developing, commercializing, and marketing electro-optical identification systems, targeting specific regions worldwide. Subject to obtaining the necessary licenses, the joint venture will receive a license to use intellectual property developed by Thirdeye, along with a structured transfer of knowledge related to the company’s field of activity. Thirdeye disclosed these details in a statement to the stock exchange.
The framework conditions for the intellectual property license and knowledge transfer have been agreed upon by both parties. These details, along with other key aspects of the joint venture agreement, will be outlined in the general meeting notice to be published for shareholder approval of the investment agreement.
As part of the deal, the investor has committed not only to purchase $10.3 million in Thirdeye shares, but also to inject an additional $12 million into the joint venture. This funding will support the advanced development of innovative products and enhance the company’s existing technological capabilities, in accordance with the approved budget to be agreed upon by both parties.
