Israeli drone operating systems company XTEND is heading to the Nasdaq at a valuation of $1.5 billion. Rather than pursuing a traditional IPO, the company will merge with JFB, which is publicly traded in New York.
The merger includes a $152 million strategic investment from backers including Eric Trump, son of the U.S. president; defense-focused fund Protego, which also led XTEND’s previous funding round; Unusual Machines; American Ventures LLC; and Aliya Capital. Following completion of the deal, the combined company is expected to be renamed XTEND AI Robotics and to trade on Nasdaq under the ticker symbol XTND.
Under the terms of the merger agreement, XTEND and JFB shareholders will receive shares in XTEND AI Robotics. Upon closing, current XTEND shareholders are expected to hold 70% of the fully diluted shares of the combined company, while JFB shareholders will hold 30%. The merger was unanimously approved by the boards of both companies and approved by written consent of JFB shareholders holding a majority of its outstanding common stock. The parties expect the transaction to close in mid-2026.
XTEND provides next-generation autonomous systems for defense, public safety and private security applications, built on its combat-proven XOS operating system. The company’s products leverage remote operation capabilities, enabling multiple aerial, ground and maritime robots to carry out complex and dynamic missions with immediate operational readiness.
The deal is also expected to support expanded U.S.-based, NDAA-compliant manufacturing capacity at XTEND’s production facility in Tampa, Florida, ultimately accelerating delivery of its products to customers in the United States, NATO allies and Asia.
XTEND was founded in 2018 by Aviv Shapira (CEO), Matteo Shapira (CXO), Rubi Liani (CTO) and Adir Tubi (CQO). The company employs staff in Israel, the United States and Singapore. About six months ago, it announced the completion of a $70 million funding round led jointly by Protego Ventures and Aliya Capital, with participation from Len Blavatnik’s Claltech, Union-Tech Ventures and Chartered Group. Additional investors include the TAU Ventures fund.
“Demand for systems that distance operators from dangerous environments is growing as the global security environment becomes more volatile and challenging, and this currently represents one of the largest market opportunities in defense technology," Aviv Shapira says. "By combining our platform with JFB, we are acquiring the resources needed to expand our manufacturing capabilities in the United States and gaining access to the U.S. public capital markets.”