2 Israeli companies — Carbyne and Orbit Systems — announced exits worth nearly $1 billion

In a landmark night for Israel’s defense and security technology sector, two Israeli companies — Carbyne and Orbit Communications Systems — announced exits worth nearly $1 billion combined, underscoring the resilience and global appeal of Israel’s security innovation ecosystem.

Carbyne Sold to Axon for $625 Million in Cash

Carbyne, a Tel Aviv–based developer of advanced emergency communications platforms, is being acquired by U.S. corporation Axon for $625 million in cash, in one of the largest exits ever recorded in Israel’s homeland security sector.

Axon, traded on Wall Street with a valuation of $56 billion, had only four months ago led Carbyne’s $100 million funding round. The deal marks a rapid escalation of partnership into full acquisition.

Founded in April 2015 by Amir Elichai (CEO), Alex Dizengoff (CTO), Yoni Yatsun (Chief Architect), and Lital Leshem—who left the company in 2017 and now heads the Protego defense-tech venture fund—Carbyne employs about 230 people, including 80 in its Israeli R&D center.

Globally, its platform is deployed in over 300 centers across 23 U.S. states and six other countries, supporting more than 7,000 dispatchers worldwide.

Carbyne’s platform allows real-time, multi-channel communication between citizens and emergency responders—combining video streaming, precise geolocation, text chat, and image transmission. Its AI-powered engine analyzes and translates incoming information in real time to optimize emergency response.

Orbit Communications Systems to Merge with Kratos Defense for $356.3 Million

Meanwhile, Orbit Communications Systems, controlled by FIMI Opportunity Fund, announced that it has signed a merger agreement with U.S.-based Kratos Defense & Security Solutions.

Under the terms, Kratos will acquire all of Orbit’s shares through a reverse triangular merger valued at $356.3 million, representing a 21% premium over Orbit’s closing share price on the Tel Aviv Stock Exchange.

Upon completion, Orbit will become a wholly owned private subsidiary of Kratos. The merger is expected to close within four months, pending customary approvals — including clearance by Orbit’s shareholders, the Israel Competition Authority, and the Defense Ministry’s Procurement Directorate.

Orbit manufactures satellite communications, telemetry, and tracking systems for defense, government, and aerospace customers, including systems for aircraft, ships, drones, and missiles. The company’s technologies are integrated into both military and civilian mobile platforms.

FIMI’s Windfall: Over 7x Return on Investment

The FIMI Fund, led by Yishai Davidi, first acquired 44% of Orbit in 2017 for NIS 54 million.
In April 2024, FIMI sold 16% of its holdings for NIS 100 million, and another NIS 50 million worth of shares last June, leaving it with a 22.5% stake before the sale.

Under the Kratos deal, FIMI will receive approximately $80 million (NIS 260 million) — a sevenfold return on its original investment, not including dividends received over the years.

Israel’s Security-Tech Momentum

Together, the Carbyne and Orbit transactions highlight Israel’s continued leadership in security, communications, and defense technologies, even amid geopolitical challenges. The dual exits underscore strong foreign investor confidence in Israeli innovation, particularly in AI, emergency management, and satellite communication systems.