The $1.5 billion transaction is said to result in the Israeli company going public via a merger with a Florida construction firm
The Wall Street Journal has reported that Eric Trump, the second of US President Donald Trump’s three sons, is making an investment in Israeli drone producer Xtend. It is reported that this funding is part of a $1.5 billion deal that is expected to take the company public through a merger with a Florida-based construction firm.
Defense analysts have pointed out the increasingly pivotal role of UAVs in intelligence, surveillance, and precision strike operations – with investments in emerging drone manufacturers being viewed as a strategic financial move in the face of rising global geopolitical tensions.
As per a WSJ report earlier this week, Israeli developer Xtend markets some of its drones as “low cost per kill” munitions. The WSJ noted that the company gained operational credibility during recent military operations in Gaza, where its products were utilized in close-range combat and urban environments. It is reported that this cost solution aligns with US defense directives to facilitate waging modern warfare.
The newspaper further stated that the company has established a production site in Florida, secured a multimillion-dollar Pentagon contract, and is part of an ongoing Department of War competition for new suppliers. It is reported that Xtend is planning to merge with JFB Construction, which is also based in Florida.
The WSJ noted that along with Eric Trump, who is described as a strategic investor, the deal is financially backed by Unusual Machines, another drone company that is supported and advised by Donald Trump Jr., the US president’s eldest son.
Xtend CEO Aviv Shapira informed the newspaper that the merger with JFB Construction would enable the company to expand production in the US and access public capital markets.
Earlier this month, the US Department of War (formerly the Department of Defense) included the Israeli producer among 25 companies invited to take part in the first phase of its ‘Drone Dominance Program’, a procurement initiative that could amount to a total value of $1.1 billion.
The WSJ mentioned criticism and scrutiny regarding the Xtend investment, citing potential conflicts of interest and renewed debate over the Trump family’s business connections across sectors.
Last year, Dominari Holdings arranged a $44 million private share placement in JFB Construction, which recently announced hotel renovation and school expansion projects. It is reported that shares of JFB surged more than 400% following the investment announcement.