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‘Israel’ continues to block US firms from acquiring Iron Dome code

Al Mayadeen | January 19, 2026

The Israeli Security Ministry has halted approval of a planned United States takeover of Amprest Systems, a company whose command-and-control software forms a core component of the Iron Dome specialized anti-air system, citing concerns over non-Israeli control of classified military technology.

The proposed deal would see US-listed Ondas Holdings acquire control of Amprest in a transaction valuing the company at more than $200 million. Under the proposed terms, Ondas would acquire the shares held by Amprest’s existing shareholders, excluding Rafael Advanced Defense Systems, in a transaction valued at approximately $100 million, leaving Rafael a minority stake in the company.

Security officials involved in the review have reportedly raised objections to a non-Israeli entity gaining control over Amprest, given the company’s central role in Iron Dome and other Israeli anti-air programs that involve classified command-and-control capabilities.

Prolonged review and internal tensions

The transaction is being reviewed by the Security Ministry’s “Department for Security of the Defense Establishment” (Malmab), headed by Yuval Shimoni. People familiar with the process say the review has dragged on for months, with no clear timeline or indication of whether the deal will ultimately be approved.

The delay has exposed internal tensions within the Security Ministry between officials seeking to attract external capital into “Israel’s” warfare technology sector and security bodies tasked with preventing sensitive military know-how from falling under external control. The lack of coordination has sent contradictory signals to investors. While the Security Ministry Director General, Major General (res.) Amir Baram, and the head of the ministry’s research and development directorate, Brigadier General (res.) Danny Gold, have publicly encouraged deeper cooperation with foreign investors, Malmab has effectively become a bottleneck.

“There is no holistic view,” a senior source familiar with the process told Israeli news website Ynet.

“Investors put tens of millions of dollars into Amprest years ago and are now told they cannot exit for security reasons,” the source said, explaining, “Under those conditions, who will want to invest in defense tech?”

Supporters of the deal contend it could proceed under strict safeguards, including limits on access, governance, and technology transfer, while critics say the process has been marked by unusually slow decision-making and heavy bureaucracy.

Amprest’s role in Iron Dome

Amprest was established around 25 years ago by Natan Barak, a retired Israeli Navy officer with the rank of colonel. Its profile rose significantly about 15 years ago after its command-and-control software was integrated into Iron Dome. In 2012, the company received the “Israel Defense Prize” for its contribution to the occupation’s specialized anti-air systems.

The company’s largest shareholder is Rafael, with the remaining shares held by Barak, the OurCrowd investment platform, and other investors. Most of Amprest’s activity is in the military sector, with Rafael as its main customer. According to people involved in the talks, Amprest had never been offered for sale before Ondas made its proposal, which one source described as “an offer shareholders couldn’t refuse.”

Ondas’ expanding footprint

Ondas, which trades on Nasdaq, has rapidly expanded its presence in “Israel’s” defense sector since October 7, 2023, assembling a portfolio of nine warfare-related companies. The firm says it has spent roughly $400 million on acquisitions to date.

Its purchases include Sentrycs, a counter-drone technology company acquired in November for $125 million in cash and $100 million in stock, and Roboteam, a military ground robotics firm bought for about $80 million. Other acquisitions include M4 Defense, Iron Drone, Apeiro Motion, Insight Intelligent Sensors, and S.P.O., a manufacturer of precision optical components. In late 2022, Ondas acquired Airobotics for about $15 million, folding it into American Robotics. Airobotics develops autonomous drones and received US Federal Aviation Administration approval to operate over populated areas.

The company’s leadership includes several former senior figures from Rafael, among them former Rafael CEO Major General (res.) Yoav Har-Even, who sits on Ondas’ advisory board, and Brigadier General (res.) Oshri Lugassy, a former senior engineering officer at Rafael who now serves as Ondas’ co-CEO and leads its most active division, Ondas Autonomous Systems (OAS). While Ondas is legally incorporated in the United States, its technological foundations, leadership, and current growth engine are deeply rooted in the Israeli military ecosystem, bringing forward questions regarding Malmab’s reservations.

Ondas and Full Spectrum

Ondas’ origins trace back to an Israeli startup known as Full Spectrum Inc., which developed the core technology behind what is now Ondas Networks, one of the company’s two main divisions. Full Spectrum was co-founded by Israeli engineer Menashe Shahar, who continues to serve as chief technology officer of Ondas Networks.

In September 2018, the current public entity, then operating as Zev Ventures, a US-based company, carried out a reverse acquisition of Ondas Networks Inc., the rebranded Full Spectrum, and subsequently adopted the name Ondas Holdings Inc.

Until late 2023, the company’s primary revenue stream came from a single wireless communications product developed by the original Israeli engineering team. Since then, Ondas’ growth has been driven largely by OAS, which has expanded rapidly through acquisitions of the aforementioned dual-use and warfare Israeli firms. Although Ondas is headquartered in West Palm Beach, Florida, a significant portion of its research, development, and operational activity remains centered in Israeli-occupied territories.

Market concerns and unanswered questions

According to Ynet, some industry figures have expressed unease over Ondas’ rapid growth and surging market valuation, which has reportedly climbed to around $5 billion following a $1 billion stock offering. One market source likened the rise to the speculative SPAC boom in the early 2020s.

Questions have also been raised about what Rafael stands to gain from the Amprest deal, given that Rafael is expected to remain Amprest’s main customer even if Ondas were to take control.

“The Iron Dome name is a premium brand,” the source said, adding, “Ondas needs it to impress investors and open doors.”

At the same time, Ondas is reportedly in talks with Rafael over the potential acquisition of Controp, another subsidiary that develops electro-optical systems, including cameras for unmanned aerial vehicles. Unlike Amprest, Controp has been openly offered for sale, and last year, US-based AeroVironment was said to be interested in acquiring a 50% stake at a valuation of $600 million to $700 million.

Is Iron Dome software shielded from US access?

Despite close military cooperation between “Israel” and the United States, specifically on the Iron Dome program, the core command-and-control software underpinning Iron Dome has remained legally and technically protected from full American access, even at the cost of major procurement and integration opportunities.

As of January 2026, the Israeli government continues to retain strict control over Iron Dome’s source code, treating it as sovereign intellectual property tied directly to “national security”. While Washington has provided significant funding and participates in co-production, Israeli authorities have consistently refused to transfer the system’s key codes to the US military.

Lurking friction

This position has generated friction in the past. In 2020, the US Army abandoned a roughly $1 billion plan to fully integrate Iron Dome into its air defense architecture after “Israel” declined to share the source code needed to connect the system with American command-and-control networks. As a result, the two Iron Dome batteries currently operated by the US function as standalone assets, unable to fully interface with broader US radar and battle management systems.

The same concern has driven Israeli intervention in the takeover of Amprest.

Rather than sharing the original source code, Tel Aviv and Washington have relied on alternative mechanisms to maintain cooperation. These include tightly controlled technical escrow arrangements, under which limited integration work can be performed without transferring full ownership or visibility over proprietary software. In parallel, US defense contractors such as Raytheon have worked with Rafael to develop US-specific variants of Iron Dome components, including the SkyHunter interceptor, using modified or adapted software that can interface with American systems while preserving the core logic of the original Israeli command-and-control software.

These arrangements underscore that Iron Dome’s software, and by extension companies such as Amprest, remains legally protected and politically sensitive within “Israel’s” military establishment, even as such safeguards draw growing criticism for entrenched protectionism.

Read more: US throws itself into THAAD shortage for ‘Israel’s’ sake; 1/4 lost

January 19, 2026 - Posted by aletho | Militarism | Israel, United States