T3 Defense Acquires 60% Stake in Israel's Project35 to Strengthen Counter-UAS Capabilities
US defense technology firm T3 Defense Inc. has completed the acquisition of a 60% stake in Israeli drone and counter-UAS developer Project35, committing $2.5 million in direct investment over the next 12 months. Project35 counts Israel Aerospace Industries, Rafael, and Elbit Systems among its clients, and has completed initial live-fire tests of an autonomous aerial interceptor.
Highlights
- T3 Defense Inc. has completed the acquisition of a 60% controlling stake in Israeli counter-UAS developer Project35.
- T3 Defense will invest $2.5 million directly into Project35 within the next 12 months to fund operations and scale-up.
- Project35 supplies IAI, ELTA Systems, Rafael Advanced Defense Systems, Elbit Systems, and the Israeli Ministry of Defense.
- Project35's autonomous aerial interceptor, powered by proprietary AI guidance, completed initial live-fire field tests and can neutralize drones within seconds of detection.
- Project35 projects unaudited FY2025 revenue of approximately $1.4 million, growing to approximately $2.4 million in FY2026.
T3 Defense Acquires 60% Stake in Israel's Project35 to Strengthen Counter-UAS Capabilities
US defense technology company T3 Defense Inc. has announced the completion of its acquisition of a 60% stake in Israeli drone developer and manufacturer Project35, which specializes in unmanned aerial systems, aerial interceptors, and counter-UAS (C-UAS) technologies.
Project35 Embedded in Israel's Top Defense Supply Chain
Project35 currently supplies several of Israel's leading defense companies, including:
- Israel Aerospace Industries (IAI)
- ELTA Systems
- Rafael Advanced Defense Systems
- Elbit Systems
The company also provides services directly to the Israeli Ministry of Defense.
Autonomous Aerial Interceptor Completes Initial Live-Fire Tests
Over the past three years, Project35 has been developing an autonomous aerial interceptor capable of neutralizing hostile drones within seconds of detection, powered by a proprietary AI-based tracking and guidance system. The interceptor recently completed a series of initial live-fire field tests, validating its operational effectiveness.
Financial Outlook and Investment Plans
Project35 is projected to generate unaudited revenue of approximately $1.4 million in fiscal year 2025, with revenue expected to grow to approximately $2.4 million in fiscal year 2026.
T3 Defense stated it will work closely with Project35's management team to accelerate commercialization, scale production, and expand customer partnerships. T3 Defense plans to deploy $2.5 million in direct investment into Project35 over the next 12 months to support the company's overall operations.
Industry Outlook
This acquisition underscores the sustained international investor appetite for counter-UAS technology. As drone threats continue to escalate globally, demand for AI-enabled autonomous C-UAS systems is rising sharply. By securing a controlling interest in Project35, T3 Defense is positioning itself to capture a significant share of this rapidly expanding market.
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