Israel Aerospace Industries Advances Merger with Elta Systems, Maker of Green Pine Radar

Israel Aerospace Industries (IAI), the nation's leading defense contractor, revealed on Wednesday that its board has endorsed a merger with its subsidiary, Elta Systems. Elta functions as a division under IAI's control, with the state holding just two shares.

Located in Ashdod, Elta leads in developing advanced defense technologies. It produces the Green Pine radar, Israel's powerful system capable of spotting distant targets and ballistic missiles launched from Yemen, Iran, or elsewhere across the Middle East. Elta also handles major interception programs like Arrow and David's Sling.

Elta's portfolio extends to communication systems, electronic warfare capabilities, and tactical radars for fighter aircraft and naval vessels. The company builds maritime equipment, including Super Dvora vessels, unmanned submarines, and sophisticated weaponry. Over 70 percent of its business comes from international customers.

Under the merger plan, Elta's full operations, assets, rights, and liabilities will transfer to IAI at no cost, dissolving Elta as an independent entity. Once finalized and approved, IAI will fully absorb all of Elta's activities.

Merger Boosts Efficiency and Streamlines Operations

IAI CEO Boaz Levy stated, "This move represents a logical and essential progression, enabling IAI to serve customers more effectively while supporting the Government Companies Authority's directives. The Government Companies Authority is guiding the approval process. Executing this amid ongoing military efforts is a smart strategy that enhances our adaptability and speeds responses to evolving global demands."

Elta already integrates seamlessly as an IAI division with complete collaboration. The merger promises no disruptions for staff and will eliminate redundant administrative layers.

The transaction will follow the Companies Law as a formal statutory merger. Completion depends on Israeli government approval under the Government Companies Law, plus other requisite clearances. IAI's leadership has the mandate to coordinate with authorities, secure permissions, and execute all necessary steps.