Motorola Solutions (NYSE: MSI) today announced it has entered into a definitive agreement to acquire Israeli counter-drone technology company D-Fend Solutions for $1.5 billion cash. This is the biggest ever acquisition of an Israeli defense technology company.
Motorola Solutions has been active in Israel since the 1960s and has hundreds of employees in Israel developing communication and liaison systems for the police, the army and security organizations. The Israeli acquisition will bring Motorola Solutions into the drone market in an activity that will continue to operate from D-Fend’s headquarters in Raanana, with the startup’s 250 employees to move to Motorola in exchange for tens of millions of dollars in bonuses and shares.
D-Fend has developed a drone interception system that swiftly locates drones, takes control of them remotely using radio waves, and lands them safely in a place where they will not cause collateral damage. Despite the variety of potential military applications on the battlefields of Lebanon and Ukraine, the company’s technology is mainly used for civilian facilities: airports, border stations, stadiums and strategic facilities that require special protection.
D-Fend’s system is especially popular at airports and even served as the main security system for the Super Bowl. Interest in the company has begun to grow not only due to the threat of drones in Ukraine and Lebanon, but also and mainly due to terrorist threats to facilities such as airports and stadiums, as well as due to the smuggling of weapons and drugs over borders into Western countries, which are increasingly carried out by drones – an issue that is being addressed by police and border patrol forces.
According to Motorola Solutions’ announcement, D-Fend will have revenue of about $185 million in 2026, after an increase of over 50% in sales in recent years in dozens of countries, including the US. The company is profitable and, as far as is known, generates cash. D-Fend was founded 10 years ago and has raised only $65 million to date. In its most recent financing round two years ago, the company received a valuation estimated at $128 million before money, according to PitchBook.
Exit for the founders
This is a huge exit for founders CEO Zohar Halachmi, CTO Assaf Monza and CPO Yaniv Benbenisti, and early investors, led by the Vertex Israel. The investment, led by the fund’s founder in Israel, Yoram Oron, has produced over $300 million for all Vertex funds, according to estimates, for a stake of about 20% of the company this after the fund invested $6 million in D-Fend’s initial round, which was at a valuation of only $17 million. Oron is also known as the founder of the ammunition company Aryt Industries (TASE: ARYT), which currently trades at a market cap of about $1 billion, Other prominent investors in D-Fend are Canadian fund Claridge, which holds over 10% of the company, and the Israel Growth Partners (IGP) fund of Moshe Lichtman and Haim Shani, whose investment is managed by partner Uri Erde.
Published by Globes, Israel business news – en.globes.co.il – on June 1, 2026.
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