Nukkleu’s stock rises in defense sector focal point By Investing.com

On By Littum

Investing.com — Shares of Nukkleus, Inc. (NASDAQ: NUKK) rose today, following the company’s announcement of a strategic acquisition that marks its entry into the defense sector. The fintech company, which has historically focused on the cryptocurrency market, revealed that it has acquired a controlling 51% stake in Star 26 Capital Inc., which has a significant interest in RIMON, a key supplier to Israel’s Iron Dome missile defense system.

The deal, which closed on December 15, 2024, for a purchase price of $26 million, signals a major turning point for Nukkleus. It expands the company’s activities to include the distribution of generators, masts and lighting solutions, along with the development of tactical vehicles for defense and intelligence services, including the Israel Defense Forces (IDF).

Manny Shalom, Nukkleus’ newly appointed CEO, emphasized the strategic nature of this merger, positioning the company to capitalize on the burgeoning defense industry. Shalom highlighted the rapid growth of the sector, driven by geopolitical shifts and increased investment, noting that similar Israeli defense firms have seen significant market index increases.

The acquisition not only diversifies Nukkleus’ business, but also aligns it with established defense exporters such as Rafael and Elbit Systems (NASDAQ: ), enhancing its defense capabilities. Beyond the defense sector, Nukkleus aims to expand its reach into banking, US real estate and tech-populated coworking spaces, leveraging its financial expertise in these areas.

Looking ahead, Nukkleus plans to integrate Star 26 operations into its business structure and pursue additional growth opportunities focusing on the Israeli and US markets. The company intends to acquire controlling interests in medium-sized companies, providing them with financing and global business development opportunities.

Investor reaction to the news was overwhelmingly positive, as evidenced by the dramatic rise in Nukkleus stock during today’s trading session. The company’s strategic shift and expansion into the defense sector appears to offer a promising path to growth that aligns with broader industry trends and capitalizes on current market dynamics.

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