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

The deal, completed on December 15, 2024, with a purchase price of $26 million, marks an important turning point for Nukkleus. It expands the company’s operations to include the distribution of generators, masts and lighting solutions, as well as the development of tactical vehicles for defense and intelligence agencies, including the Israel Defense Forces (IDF).

Manny Shalom, Nukkleus’ newly appointed CEO, emphasized the strategic nature of this merger and positioned the company to benefit from the emerging defense industry. Shalom highlighted the sector’s rapid growth, driven by geopolitical changes and increased investments, noting that similar Israeli defense companies 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:), thereby enhancing its defense capabilities. In addition to the defense sector, Nukkleus aims to expand its reach into banks, US real estate and technology-focused coworking spaces, leveraging its financial expertise in these areas.

Going forward, Nukkleus plans to integrate Star 26’s operations into its business structure and pursue further growth opportunities, with a focus on the Israeli and US markets. The company intends to acquire majority stakes in medium-sized companies, thereby 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 shares during today’s trading session. The company’s strategic shift and expansion into the defense sector appears to offer a promising growth path that aligns with broader industry trends and capitalizes on current market dynamics.

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