BiomX Inc. (NYSE American: PHGE) has completed the acquisition of a 60% controlling stake in DFSL, an Israeli defense engineering company that develops proprietary laser‑radar (LADAR) detection systems for perimeter security, critical infrastructure, and counter‑UAS markets. The transaction is structured with $750,000 in cash, a $3 million unsecured convertible note, and warrants exercisable at $12 per share, with a revenue‑based bonus tied to DFSL achieving at least $25 million in annual sales from 2027. The total value of the deal is estimated at approximately $45 million, including the cash, note, and warrants.
The acquisition is intended to complement BiomX’s existing AI‑driven command‑and‑control platform, which was previously built through the purchase of Zorronet. By integrating DFSL’s LADAR technology with BiomX’s AI platform, the company aims to deliver a fully integrated defense solution that combines real‑time detection, analysis, and response capabilities. The combined platform is expected to enhance BiomX’s competitive position in the growing global defense and security market and to provide a new revenue stream as the company pivots away from its original phage‑therapy business.
The defense and security market is projected to reach $44 billion by 2030, with the counter‑UAS and perimeter‑security segments experiencing particularly strong growth. DFSL’s LADAR platform demonstrates approximately 99 % accuracy in real‑world applications, positioning the combined entity to capture high‑value contracts in critical infrastructure protection and national‑border security.
BiomX has historically reported net losses and a significant cash burn, with reserves sufficient to fund operations only into the first quarter of 2026. The acquisition of DFSL, following the earlier purchase of Zorronet, is part of a broader strategy to diversify revenue sources and reduce reliance on the phage‑therapy pipeline. Investors have historically reacted negatively to BiomX’s expansion announcements, citing valuation concerns and financial headwinds.
"This transaction reflects how we are building the Company today, with leadership and engineering capabilities grounded in real defense experience," said Michael Oster, CEO of BiomX. "This transaction represents our entry point into the defense and security sector, where we see strong and growing demand driven by evolving global threats and increasing infrastructure protection needs. DFSL brings a proven technology platform with real‑world deployments, positioning us to establish an initial presence in high‑demand markets such as counter‑UAS and perimeter security. From this starting point, we plan to expand capabilities, increase deployment across new geographies, and build a broader footprint in defense and critical infrastructure markets over time."
Idan Wasserman, CEO of Zorronet, added, "Combined with DFSL's LADAR detection systems, we will be able to create a more comprehensive and precise rational response. Together, we believe we will enable security and defense operators to act with greater speed, accuracy, and confidence across everything from single facilities to critical infrastructure and national borders."
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