Nukkleus Launches Defense Subsidiary and Secures Exclusive U.S. Distribution Agreement with BladeRanger to Capitalize on Booming Drone Payload Market

Rhea-AI Summary

Nukkleus (Nasdaq: NUKK) has announced two strategic moves in the aerospace and defense industry: the formation of Nukkleus Defense Technologies, a new wholly-owned subsidiary, and securing an exclusive U.S. distribution agreement with BladeRanger (TASE: BLRN).

The three-year distribution agreement, which includes a five-year extension option, grants Nukkleus exclusive rights to distribute BladeRanger's drone payload technologies in the U.S. market. The agreement includes an upfront licensing payment and progressive minimum annual purchase commitments. The global drone payload market is projected to grow from $7.2 billion in 2020 to $33.3 billion by 2030.

This strategic expansion follows Nukkleus' previously announced agreement with Star 26 Capital Inc., which is pending shareholder approval. The new subsidiary will focus on commercializing third-party solutions and developing proprietary defense technologies.

Positive

• Exclusive U.S. distribution rights for BladeRanger's drone payload technologies
• Entry into the rapidly growing drone payload market projected to reach $33.3B by 2030
• Potential for additional 5-year agreement extension based on performance
• Performance incentives including annual purchase credits for exceeding sales targets

Negative

• Significant financial commitments through upfront licensing payment and minimum purchase volumes
• Star 26 Capital agreement still subject to shareholder approval
• Success dependent on meeting progressive purchase volume commitments

Strategic moves position Nukkleus to commercialize advanced drone payload solutions in the U.S. while laying the foundation for the future development of proprietary defense technologies

NEW YORK, Aug. 26, 2025 (GLOBE NEWSWIRE) -- Nukkleus Inc. (Nasdaq: NUKK) (“Nukkleus” or the “Company”), a strategic acquirer and developer of high-growth businesses in the Aerospace and Defense (A&D) industry, today announced the establishment of Nukkleus Defense Technologies Inc. (“Nukkleus Defense Technologies”), a wholly owned subsidiary that will serve as the cornerstone of its defense-focused activities. In parallel, the Company has entered into an exclusive US distribution agreement with BladeRanger Ltd. (TASE: BLRN) (“BladeRanger”), a publicly traded Israeli innovator in advanced drone payload systems for defense, homeland security, and solar applications.

Nukkleus Defense Technologies Subsidiary

The establishment of Nukkleus Defense Technologies subsidiary marks a significant step in the Company’s broader strategy of acquiring and developing high-growth businesses within the A&D industry. Following the previously announced agreement with Star 26 Capital Inc., which remains subject to shareholder approval, the subsidiary will serve as the foundation for Nukkleus’ defense-focused activities, initially through the commercialization of advanced third-party solutions and, over time, through the development of proprietary technologies designed to meet the growing global demand for next-generation defense capabilities.

Agreement with BladeRanger

As part of this strategic pivot, Nukkleus has entered into an exclusive three-year distribution agreement with BladeRanger, with the option to extend for an additional five years, subject to performance. The agreement grants Nukkleus the sole rights to bring BladeRanger’s proprietary drone payload technologies to the U.S. market.

BladeRanger’s advanced payload system solutions are designed to enhance surveillance, reconnaissance, tactical operations, and critical infrastructure maintenance for homeland security, and industrial applications. The partnership aims to accelerate adoption of BladeRanger’s advanced payload systems across U.S. defense and commercial markets.

The global drone payload market was valued at approximately $7.2 billion in 2020 and is expected to reach $33.3 billion by 2030, reflecting strong compound annual growth. This explosive trajectory underscores the urgency and opportunity of deploying advanced payload technologies at scale across defense and critical infrastructure sectors. 

Under the terms of the agreement, Nukkleus will provide an upfront licensing payment, for the exclusive distribution rights of Blade Range’s solutions in the U.S. In addition, the Company has committed to minimum annual purchase volumes that will increase progressively over the three-year term. Should these commitments be met, the partnership will continue for an additional five years with higher purchase thresholds. The agreement also allows Nukkleus to establish subsidiary operations and engage sub-distributors to maximize market reach, while incorporating performance incentives such as annual purchase credits for exceeding sales targets.

“Our expansion into defense reflects both the evolving global security landscape and the opportunities we see in advanced drone technologies,” said Menny Shalom, CEO of Nukkleus. “By establishing Nukkleus Defense Technologies and securing this exclusive partnership with BladeRanger, we are positioning ourselves to deliver transformative solutions to U.S. defense and homeland security customers while driving long-term value for our shareholders.”

“This agreement provides BladeRanger with a direct pathway into the U.S. defense market through a strong and strategically aligned partner,” said Hagai Klimor, CEO of BladeRanger. “Nukkleus’ commitment to defense and their operational capabilities make them the ideal choice to scale our technologies in the United States.”

About Nukkleus Inc.

Nukkleus Inc. (NASDAQ: NUKK) focuses on acquiring and scaling mission-critical suppliers across the defense, aerospace, and advanced manufacturing sectors. Nukkleus targets Tier 2 and Tier 3 companies that form the industrial backbone of national security infrastructure in the US, Israel and Europe. Through its proprietary capital model, Nukkleus integrates operational capabilities, financial discipline, and long-term vision to modernize and expand strategic suppliers—supporting dual-use innovation and resilient supply chains.

The company’s portfolio approach combines organic growth with disciplined M&A, enabling transformational scale and positioning Nukkleus at the core of 21st-century defense industrial strategy.

About BladeRanger Ltd.

BladeRanger Ltd. is a public Israeli company at the forefront of drone payload innovation, developing integrated hardware and software systems for defense and homeland security applications. The company's proprietary technology delivers advanced capabilities for surveillance, reconnaissance, and tactical operations. Beyond defense applications, BladeRanger also pioneers solutions in solar infrastructure maintenance through its Solar Drones and DeepSolar software platform, demonstrating the versatility of its technology portfolio.

Forward-Looking Statements

This press release contains forward-looking statements which are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts are "forward-looking statements" within the meaning of federal securities laws. In some cases, you can identify forward-looking statements by terminology such as "will," "would," "expect," "intend," "plan," "objective," or comparable terminology referencing future events, conditions or circumstances, or the negative of such terms. Although Nukkleus believes that it has a reasonable basis for the forward-looking statements contained in this press release, they are based on management's current beliefs and expectations about future events and circumstances and are subject to risks and uncertainties including the ability to complete the transaction with Star 26 Capital Inc., market adoption of defense technologies, and the Company's ability to meet minimum purchase commitments under the BladeRanger agreement, all of which are difficult to predict and many of which are beyond the Company's control. Risk factors described under "Risk Factors" in Nukkleus' most recently filed annual report on Form 10-K, as updated from time to time in its quarterly reports on Form 10-Q and other filings with the Securities and Exchange Commission, may cause actual results, performance or achievements to differ materially from those expressed or implied by forward-looking statements in this press release. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they were made. Nukkleus undertakes no obligation to update any forward-looking statement contained in this press release to reflect events that occur or circumstances that exist after the date of this press release, except as required by law.

For more information, please contact:

Investor Relations (US)
Lena Cati
Tel: +1 212 836-9611
lcati@theequitygroup.com

Val Ferraro
Tel: +1 212 836-9612
vferraro@theequitygroup.com

FAQ

What is the new strategic partnership between Nukkleus (NUKK) and BladeRanger?

Nukkleus secured an exclusive three-year U.S. distribution agreement with BladeRanger for their drone payload technologies, with an option to extend for five more years based on performance.

What is the market size for drone payload technology that Nukkleus (NUKK) is entering?

The global drone payload market is valued at $7.2 billion (2020) and is expected to reach $33.3 billion by 2030.

What is Nukkleus Defense Technologies and what will it do?

Nukkleus Defense Technologies is a new wholly-owned subsidiary of Nukkleus that will focus on commercializing third-party solutions and developing proprietary defense technologies.

What are the key terms of NUKK's distribution agreement with BladeRanger?

The agreement includes an upfront licensing payment, exclusive U.S. distribution rights, minimum annual purchase commitments, and performance incentives with the potential for a five-year extension.

How will the BladeRanger partnership affect Nukkleus's market position?

The partnership gives Nukkleus exclusive access to the U.S. defense and commercial markets for BladeRanger's advanced drone payload technologies, positioning them in the rapidly growing drone payload sector.