Nukkleus forms defense unit, signs distribution deal with BladeRanger

Nukkleus Inc. (NASDAQ: NUKK) established a defense subsidiary and entered into an exclusive three-year distribution agreement with BladeRanger Ltd. (TASE: BLRN) for the U.S. market, according to a company statement.

The newly formed Nukkleus Defense Technologies Inc. will serve as the company's defense-focused arm. The subsidiary will initially commercialize third-party solutions and later develop proprietary technologies for defense applications.

Under the BladeRanger agreement, Nukkleus secured exclusive U.S. distribution rights for the Israeli company's drone payload systems with an option to extend for five additional years based on performance. The deal includes an upfront licensing payment and minimum annual purchase volumes that increase over the three-year term.

BladeRanger develops drone payload technologies for surveillance, reconnaissance, and tactical operations in defense and homeland security sectors. The company also provides solutions for solar infrastructure maintenance.

The global drone payload market was valued at approximately $7.2 billion in 2020 and is projected to reach $33.3 billion by 2030, according to the press release.

"Our expansion into defense reflects both the evolving global security landscape and the opportunities we see in advanced drone technologies," said Menny Shalom, CEO of Nukkleus.

Nukkleus focuses on acquiring companies in the defense, aerospace, and advanced manufacturing sectors. The defense subsidiary establishment follows a previously announced agreement with Star 26 Capital Inc., which remains subject to shareholder approval.

BladeRanger CEO Hagai Klimor said the agreement provides the company with access to the U.S. defense market through Nukkleus' operational capabilities.

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