Veloryx, a homeland security solutions company, is in advanced negotiations to acquire a 70 percent controlling stake in Israeli defense drone manufacturer Aero Sol Aviation Solutions Ltd., with the parties aiming to finalize a binding agreement by April.
The deal, valued at approximately NIS 26 million for the majority stake of 70%, includes an additional NIS 9 million investment in several installments to support Aero Sol’s expansion. Under the proposed structure, Veloryx would also receive an option to acquire the remaining shares at a pre‑agreed price.
The potential acquisition is part of Veloryx’s broader strategy for becoming a multidisciplinary homeland security integrator, offering end‑to‑end solutions for cities, airports, critical infrastructure, and strategic assets.
The company aims to assemble a portfolio of complementary technologies such as unmanned systems, sensors, detection and identification tools, robotics, and command‑and‑control platforms for the protection of critical infrastructure through targeted mergers and acquisitions.
By integrating companies with proven operations and existing sales, Veloryx will create technological and commercial synergies within the group, while also expanding its presence in defense and civilian markets worldwide.
Speaking to Defense & Tech by The Jerusalem Post, Veloryx CEO Roy Bargil said the company specifically seeks firms with meaningful revenue and proven sales capabilities. “We want to bring in companies that already know how to successfully sell their products,” he said. “Aero Sol fits that profile.”
Aero Sol: Tactical ISR drones
Based in Petah Tikva, Aero Sol operates modern manufacturing facilities and has over 13 years of experience in supplying drone systems to defense and governmental clients in Israel and abroad. It reports annual revenues of NIS 15-20 million.
Aero Sol’s product line includes a family of four intelligence, surveillance, reconnaissance (ISR) drones of varying sizes. Some models can carry payloads of up to 10 kilograms while others are known for their extended endurance of up to 90 minutes. They have a low acoustic signature that allows troops to operate with greater discretion.
“These capabilities give soldiers a significant operational advantage. Quiet drones matter when you need to stay unseen and unheard,” Bargil told D&T, explaining that Israel’s security forces collectively operate an estimated 50,000 ISR drones, underscoring the scale of the domestic market alone.
He explained that Veloryx intends not only to expand Aero Sol’s existing product line but also to develop a new strategic drone platform capable of competing globally, particularly against Chinese manufacturers that dominate the commercial and tactical drone markets.
“We want an Israeli product that can go head‑to‑head with the Chinese in price and capabilities,” he said. “Aero Sol gives us the foundation to do that.”
The company also works in composite materials and provides aviation solutions to defense and government clients, further broadening Veloryx’s technological base.
A growing global market
The unmanned systems sector has expanded rapidly in recent years, driven by increased use of drones in defense operations, border protection, infrastructure security, and intelligence missions. Rising global security tensions, especially the war in Iran and the misuse of drones for criminal or hostile activity have accelerated investment in detection, monitoring, and counter‑drone technologies.
Veloryx believes integrating Aero Sol into its group will strengthen its position in this fast‑growing field. “The identity of the company we intend to acquire reflects the type of solutions we plan to bring to Veloryx,” Bargil said.
“Our goal is to become a leading player in homeland security, offering modular and comprehensive solutions for both military and civilian sectors.”
The company is moving quickly, he added: “The pace at which we are progressing reflects our determination to implement our strategy rapidly.”