BiomX Acquires Israeli AI Defense Tech Firm ZorroNet, Issues 1.3M Shares and $1.25M Note in Strategic Pivot
BiomX Inc. has completed the acquisition of Zorro Net Ltd., an Israeli artificial intelligence defense technology company, marking a significant strategic expansion into the defense and homeland security sector. The transaction, which closed on April 10, 2026, involved BiomX issuing 1.3 million shares of its common stock and a $1.25 million non-convertible promissory note to Water IO Ltd., ZorroNet's former parent. ZorroNet specializes in AI-powered computer vision and autonomous surveillance systems, with its technology already deployed at Israel Defense Forces bases and critical national infrastructure, and active engagements with major defense contractors like Elbit Systems Ltd. This acquisition positions BiomX to capitalize on ZorroNet's established technology and market presence, with an earnout structure designed to incentivize future performance.
Key Highlights
- BiomX Inc. acquired 100% of Zorro Net Ltd., an Israeli AI defense technology company, on April 10, 2026.
- The consideration for the acquisition included 1,300,000 shares of BiomX common stock and a $1,250,000 non-convertible promissory note, payable by July 7, 2026, issued to Water IO Ltd.
- BiomX assumed obligations for a performance-based earnout to ZorroNet’s founders, payable by March 31, 2027, equal to the greater of 125% of ZorroNet’s 2026 consolidated revenue or 8x 2026 consolidated EBITDA.
- ZorroNet's proprietary AI-powered computer vision and autonomous surveillance systems are operationally deployed at Israel Defense Forces (IDF) bases, military security operations centers, and critical national infrastructure sites.
- ZorroNet maintains active engagements with top Israeli defense prime contractors, including Elbit Systems Ltd (TASE/Nasdaq: ESLT).
- The acquisition includes a commitment to retain key ZorroNet personnel for three years on no less favorable terms.