IAI Board Approves Strategic Merger to Absorb Elta Systems
Israel Aerospace Industries' board has approved absorbing Elta Systems into IAI following government clearance. The strategic merger aims to streamline operations while retaining Elta as a branded division.
Israel Aerospace Industries (IAI) has announced that its board of directors, chaired by Boaz Levy, has approved the merger agreement absorbing Elta Systems into IAI. This follows the Israeli government's approval of the merger on July 6, 2026.
Under the agreement, the completion of the merger is contingent upon fulfilling several conditions and obtaining necessary regulatory approvals by the end of 2027 or an agreed later date. As part of the reorganization, all of Elta's operations, assets, rights, and liabilities will be fully transferred to IAI. Elta will continue to operate as a division bearing its name while ceasing to exist as a separate legal entity, a step designed to cut bureaucratic red tape.
"The merger of Elta into Israel Aerospace Industries is a significant strategic move reflecting a long-term vision and organizational responsibility," said IAI Chairman Boaz Levy. He added that the initiative is being advanced in cooperation with the employee union, aiming to strengthen the company's business resilience and unity.
IAI CEO Guy Bar Lev noted that absorbing Elta marks a major milestone in realizing IAI's "One Company" strategic vision. "The move will leverage the benefits of a unified organizational structure by streamlining processes, reducing interfaces, and expanding organizational flexibility," Bar Lev stated, emphasizing the commitment to preserving Elta's unique capabilities and human capital.
