ParaZero Signed Non-Binding Letter of Intent to Acquire a Company that Specializes in Counter-Drone Systems and Autonomous Drone Technologies

Rhea-AI Summary

ParaZero Technologies (Nasdaq: PRZO) has signed a non-binding Letter of Intent to acquire Lulav Space , a company specializing in counter-drone systems and autonomous technologies. The acquisition, expected to close in Q2, will be financed through a combination of cash and equity.

Founded in 2021, Lulav Space develops vision-based precision navigation systems for space robotics missions and was selected as the primary navigation solution for the 'Beresheet 2' lunar mission. The company's flagship products include:

• Advanced Guidance Kit: A platform-agnostic module for autonomous kinetic interception of drone swarms
• Autonomous Navigation Kit: A GPS-independent system combining EO/IR sensors with Visual-Inertial SLAM algorithm for GPS-denied environments

The acquisition aims to enhance ParaZero's capabilities in the Counter-UAS field and expand its presence in the defense market while opening new commercial opportunities.

Positive

• Strategic expansion into counter-drone and defense markets
• Acquisition brings proven space-grade autonomous navigation technology
• Access to Lulav's established Beresheet 2 lunar mission contract
• Addition of two market-ready flagship products to portfolio

Negative

• Non-binding LOI subject to due diligence and final agreements
• Acquisition cost and equity dilution details not disclosed
• Integration risks of combining two different technology platforms

Insights

M&A Analyst

ParaZero's non-binding LOI to acquire Lulav Space represents a strategic expansion into advanced counter-drone and autonomous systems markets. The proposed acquisition would significantly enhance ParaZero's technological capabilities with Lulav's expertise in precision navigation systems originally developed for space applications and subsequently adapted for defense markets.

Lulav brings two noteworthy products: the Advanced Guidance Kit for drone swarm interception and the Autonomous Navigation Kit enabling GPS-independent operation. These technologies complement ParaZero's existing safety systems for commercial drones while opening access to the growing defense sector.

This transaction demonstrates ParaZero's intent to diversify beyond its current focus and potentially increase its addressable market. The deal structure involving both cash and equity indicates a balanced approach to financing the acquisition without potentially overleveraging the company.

Several cautions warrant attention: the preliminary nature of this LOI, pending due diligence results, lack of disclosed financial terms, and absence of expected financial impact metrics. With ParaZero's $13.8M market capitalization, investors should closely monitor the final acquisition cost and integration plans when definitive agreements are announced. The successful execution of this strategic pivot will depend on management's ability to effectively integrate Lulav's technology and team while capitalizing on cross-selling opportunities.

Proposed acquisition would bring advanced space technologies and deep-space navigation expertise into ParaZero’s innovation portfolio

TEL AVIV, Israel, March 27, 2025 (GLOBE NEWSWIRE) -- ParaZero Technologies Ltd. (Nasdaq: PRZO) (“ParaZero”), an aerospace company focused on safety systems for commercial unmanned aerial systems and counter UAS systems, today announced the signing of a non-binding Letter of Intent (LOI) to acquire 100% of the issued and outstanding share capital of Lulav Space Ltd. (“Lulav”), a company specializing in the development of counter drone systems, AI, space-grade autonomous systems, and computer vision.

Lulav Space was founded in 2021 with the goal of developing vision-based precision navigation systems for space robotics missions. Lulav specializes in advanced guidance, navigation and control technologies that integrate both software and hardware to enable autonomous systems in extreme and challenging environments. Lulav's landing system was selected as the primary navigation solution for both landers in the “Beresheet 2” lunar mission. Building on its proven capabilities and IP in space applications, Lulav has recently expanded into the defense sector, developing counter-drone systems and autonomous drone technologies. Its flagship products include:

●   Advanced Guidance Kit
A platform-agnostic module that can be integrated into most drones, enabling autonomous kinetic interception of drone swarms.

●   Autonomous Navigation Kit
A GPS-independent system combining EO/IR sensors with a Visual-Inertial SLAM algorithm, enabling autonomous operation of aerial platforms in GPS-denied environments.

Subject to the completion of due diligence and the execution of definitive agreements, the proposed acquisition is expected to close in the second quarter and be completed through a combination of cash and equity.

Boaz Shetzer, CEO of ParaZero, commented, “This proposed acquisition aligns with ParaZero's vision to expand its capabilities in the CUAS field. Lulav’s proven expertise in autonomous solutions, precision navigation, deep-space sensing and counter drone applications would add powerful capabilities to our portfolio as we continue expand into the defense market. Lulav’s solutions would also open new commercial market potential for ParaZero, adding more value and potential growth in the future.”

About ParaZero Technologies

ParaZero (Nasdaq: PRZO) is an aerospace company focused on safety systems for commercial unmanned aerial systems and counter UAS systems. Started in 2014 by a passionate group of aviation professionals and drone industry veterans, ParaZero designs smart, autonomous parachute safety systems designed to enable safe flight operations over populated areas and beyond-visual-line-of-sight (BVLOS) as well as for various military applications including Counter UAS. For more information about ParaZero, please visit https://parazero.com/.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act and other securities laws. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements. For example, ParaZero is using forward-looking statements when it discusses the execution of definitive agreements with Lulav Space Ltd., the timing and completion of the transaction, the satisfaction of customary closing conditions related to the transaction, its vision to expand its capabilities in the CUAS field, how Lulav’s proven expertise in autonomous solutions, precision navigation, deep-space sensing and counter drone applications would add powerful capabilities to its portfolio, its continued expansion into the defense market, how Lulav’s solutions would open new commercial market potential for ParaZero and its added value and potential growth in the future. Forward-looking statements are not historical facts, and are based upon management’s current expectations, beliefs and projections, many of which, by their nature, are inherently uncertain. Such expectations, beliefs and projections are expressed in good faith. However, there can be no assurance that management’s expectations, beliefs and projections will be achieved, and actual results may differ materially from what is expressed in or indicated by the forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the forward-looking statements. For a more detailed description of the risks and uncertainties affecting the Company, reference is made to the Company’s reports filed from time to time with the Securities and Exchange Commission (“SEC”), including, but not limited to, the risks detailed in the Company’s Annual Report on Form 20-F filed with the SEC on March 21, 2025. Forward-looking statements speak only as of the date the statements are made. The Company assumes no obligation to update forward-looking statements to reflect actual results, subsequent events or circumstances, changes in assumptions or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws. If the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. ParaZero is not responsible for the content of third-party websites.

Investor Relations Contact:

Michal Efraty
Investor Relations
michal@efraty.com

ParaZero Technologies Ltd. | 30 Dov Hoz, Kiryat Ono, Israel 5555626
P: +972-36885252 | E: contact@parazero.com | F: +972-3-688-5246

FAQ

What are the key products Lulav Space brings to ParaZero (PRZO) through this acquisition?

Lulav Space brings two flagship products: the Advanced Guidance Kit for drone swarm interception and the Autonomous Navigation Kit for GPS-denied operations.

When is the ParaZero (PRZO) acquisition of Lulav Space expected to close?

The acquisition is expected to close in the second quarter of 2025, subject to due diligence and definitive agreements.

What is Lulav Space's role in the Beresheet 2 lunar mission?

Lulav Space's landing system was selected as the primary navigation solution for both landers in the Beresheet 2 lunar mission.

How will ParaZero (PRZO) finance the Lulav Space acquisition?

The acquisition will be financed through a combination of cash and equity.

What markets will the Lulav Space acquisition open up for ParaZero (PRZO)?

The acquisition will expand ParaZero's presence in the defense market and counter-drone systems while opening new commercial market opportunities.