The Israeli government approved the full merger of Elta, a defense electronics subsidiary, into Israel Aerospace Industries on Sunday. This approval comes ahead of a potential initial public offering for Israel Aerospace Industries.

Following the merger, all of Elta's operations, assets, rights, and liabilities will transfer to Israel Aerospace Industries. Elta will cease to exist as a separate legal entity but will continue as a division bearing its name. Israel Aerospace Industries stated that this action is intended to eliminate bureaucracy that complicates operations and slows the approval of deals and sales proposals.

Boaz Levy, Chairman of Israel Aerospace Industries, said, "The merger of Elta into IAI is a natural and necessary step, completing the strategic move we have been leading in recent years to turn IAI into a single company." He added, "Elta is a central pillar of IAI and so it will remain." Levy also stated, "Its merger strengthens the company's ability to operate as a more unified, efficient, and flexible firm, and to provide a faster, higher-quality response to our customers in Israel and around the world." He noted, "It should be noted that the entire move is being carried out in full coordination with employee representatives, and is not expected to include material changes to the organizational structure or affect Elta's workers."

Elta specializes in radar, intelligence systems, and unmanned vehicles, with operations located in Ashdod and Beersheba. Israel Aerospace Industries, which employs approximately 15,000 individuals, reported sales of 7.8 billion dollars and a net profit of 415 million dollars in 2025. The company also had an order backlog of 29 billion dollars. The Government Companies Authority valued Israel Aerospace Industries at 100 billion shekels and is considering options for listing the company on either the Nasdaq exchange in the U.S. or the Tel Aviv Stock Exchange. Preparations for the initial public offering are ongoing within Israel Aerospace Industries.