Business brief
Defense Backlogs Expand as Israeli Enterprise and Biotech Firms Reinvest Cash
Elbit pushes its backlog past $32 billion with $270M in payload deals, while HiBob and RedHill fund expansion through corporate investments and asset sales.
Business
Salesforce's $166 million lead investment in HiBob proves international growth funds will still pay top dollar for profitable Israeli enterprise software leaders.
BackgroundHiBob develops HR management software for mid-market and enterprise corporations expanding across global markets. The firm last raised capital at a $2.7 billion valuation in 2023 before accelerating corporate expansion across North America and Europe.
- Salesforce Ventures anchored the $166 million investment round, marking one of the largest growth equity commitments for an Israeli tech firm in 2026.
- The transaction values HiBob at $3.5 billion, representing a 30% valuation step-up that defies broader late-stage software markdown trends.
- HiBob will deploy the proceeds toward targeted HR software M&A and automated workforce management features, aiming to accelerate growth among enterprise clients.
Business
Elbit's $270 million electro-optical deal shows international militaries are locking in multi-year Israeli defense hardware contracts despite rising shekel export friction — keeping its backlog above $32B.
BackgroundElbit Systems manufactures airborne intelligence sensors, optical surveillance systems, and unmanned vehicle software for military forces worldwide. Global defense spending expansion has pushed order books for Israeli defense exporters to record highs despite shekel exchange rate friction.
- The six-year agreement supplies Elbit's SPECTRO and AMPS multi-spectral optical payload families, giving international military aircraft upgraded long-range surveillance capabilities.
- Systems integrate high-resolution thermal sensors with automated machine-learning target detection, accelerating real-time threat analysis for airborne operators.
- The international win pushes Elbit's total corporate backlog beyond $32 billion, providing long-term revenue visibility as global defense budgets expand.
Business
RedHill's asset swap expands its commercial gastrointestinal drug pipeline while using divestiture proceeds to avoid dilutive equity raises.
BackgroundRedHill Biopharma is a Nasdaq-listed specialty pharmaceutical company that commercializes gastrointestinal and infectious disease therapies. The firm uses non-dilutive corporate divestitures to acquire immediate cash-flowing drug portfolios.
- The acquired gastrointestinal drugs Rebyota and Clenpiq generated $37.5 million in combined U.S. net sales in 2025, providing immediate revenue growth for RedHill.
- RedHill paid $12 million cash upfront plus potential milestone payments, securing commercial rights while retaining cash reserves for marketing deployment.
- Selling its 70% stake in Talicia to Apotex generated $18 million in immediate cash, fully funding the upfront acquisition cost without equity dilution.
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