Elron Ventures (TASE: ELRN) announced today that its board of directors had approved the mergers and acquisitions program of Rafael Development Corporation, RDC, its joint venture with Rafael Advanced Defense Systems announced in March.

Subject to receipt of the required approvals, Elron and Rafael will provide up to $300 million over three years, in equal shares, for the purpose of acquiring dual-purpose (military and civilian) technology companies, alongside continued investment in companies at advanced stages of growth in defense-tech, deep-tech, cybersecurity, and AI.

The initial allocation for the program will be up to $100 million ($50 million each). The program and the budget have yet to be approved by the board of Rafael. Full or partial implementation of the program also depends on finding appropriate sources of finance. Elron believes that geopolitical changes together with increased defense budgets and growing demand for advanced technologies with both military and civilian applications "are driving an increase in demand for innovative technological solutions and the integration of advanced technologies into existing security platforms, including through mergers and acquisitions."

Elron also reported that it was considering an offering of bonds and warrants to finance its share of the acquisitions program.

"In recent years we have seen significant acceleration in global investment in dual use and defense tech along with growing demand for advance technologies originating in the civilian market," said Elron Ventures chairperson Lisya Bahar-Manoah and Yaniv Shnieder, CEO of Elron and joint CEO of RDC. "The combination of Rafael’s outstanding capabilities in operational technologies and needs and the ability of Elron to identify, invest in, and grow companies creates a unique model for building significant companies in the defense-civilian market."

Published by Globes, Israel business news - en.globes.co.il - on June 1, 2026.

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