Sometimes the best defense is a good acquisition strategy. Nukkleus Inc. (NUKK) discovered that Tuesday when shares climbed nearly 18% on news that its planned acquisition target stands to cash in on one of the biggest Iron Dome investments in history.
The Deal Behind the Deal
Nukkleus, which specializes in acquiring and developing aerospace and defense businesses, announced that Rimon—an Israeli supplier of critical power and subsystem components for the Iron Dome missile defense system—is expected to benefit significantly from Israel's newly approved expansion of the program.
Here's where it gets interesting. On November 20, 2025, Israel's Ministry of Defense inked a major contract with Rafael Advanced Defense Systems Ltd., one of Rimon's key partners, to accelerate production of Iron Dome interceptors and related equipment. The funding? Mostly courtesy of an $8.7 billion U.S. defense aid package, with $5.2 billion earmarked specifically for Israel's air-defense system. That's one of the largest investments ever made in Iron Dome production.
Nukkleus is moving forward with acquiring Rimon through its controlling stake in Star 26 Capital Inc. Rimon has built solid partnerships with Rafael, Elbit Systems, and other major defense contractors. With production ramping up, Nukkleus anticipates strong demand for Rimon's manufacturing capabilities.
What Management Says
"This historic Iron Dome expansion contract validates our strategic decision to pursue the acquisition of Rimon, and position Nukkleus at the heart of Israel's defense industrial base," said Menny Shalom, CEO of Nukkleus. "Rimon is already preparing to expand operations as early as 2026, and we expect the new production plan will have a significant impact on both Nukkleus and Rimon."
The Numbers
Nukkleus shares jumped 17.68% to $6.19 at the time of publication Tuesday. Despite the surge, the stock remains well below its 52-week high and is trading 12.3% below its 50-day moving average—suggesting investors see room for recovery if the Rimon acquisition delivers on its promise.
