Thirdeye, which develops electro-optical systems integrated with artificial intelligence to detect unmanned aerial vehicles and drones, jumped 17% in trading on the Tel Aviv Stock Exchange on Monday (up 70% over the past three months).
The move followed the company’s announcement that it has called a general meeting for February 15 to approve a deal to sell 30% of its shares to the UAE-based EDGE Group in exchange for a $10 million investment. The transaction is still subject to regulatory approvals.
Thirdeye supplies the IDF with AI-enabled systems for detecting drones, ground-based sky-facing systems and specialized drone-mounted observation systems used for intelligence gathering, such as identifying people or vehicles on the ground. The company went public in 2010 at a valuation of 112 million shekels. Its current market value is 161 million shekels.
Thirdeye is riding a wave of global demand for solutions to detect unmanned aircraft, a threat that has intensified on the battlefield since the Russia-Ukraine war and became more acute during Swords of Iron war. The company’s systems entered operational use for the first time during the war.
EDGE Group is an advanced technology and defense conglomerate from the United Arab Emirates, founded in November 2019 and based in Abu Dhabi. The group brings together more than 25 companies specializing in military and civilian solutions and employs more than 12,000 people. EDGE is ranked among the world’s top 25 defense suppliers, operates in 140 countries and has an order backlog of $12.8 billion. The group focuses on developing advanced technologies, including unmanned systems, electronic warfare, cyber, air, land and naval systems and precision weapons.
As previously reported, in January Third Eye first disclosed an agreement with EDGE that also includes the establishment of a joint venture, in which the buyer will invest an additional $12 million. EDGE will hold 51% of the joint venture’s equity, though the Israeli company says it will not have control. Third Eye will hold 43%, with a third party holding 6%. The joint venture will receive a license to use Third Eye’s relevant intellectual property and will focus on developing, commercializing and marketing electro-optical detection systems, with an emphasis on specific territories worldwide.
EDGE Group President Rodrigo Torres said at the time: “Thirdeye’s solutions provide an important layer of protection in the field of unmanned aircraft detection. We believe the cooperation will benefit both sides and promote the development of new products that will lead detection capabilities on the new battlefield of aerial warfare.”
Thirdeye was not the only defense-related stock to post sharp gains on Monday. Arit Industries rose 9.5%, Elbit Systems gained 7.5% and NextVision climbed 5.5%. By contrast, shares of Partner fell 3.5% and Isracard dropped 3.1%.