Israel’s Elbit acquires Canadian company focused on autonomous underwater systems
JERUSALEM — Israel’s Elbit Systems has acquired International Submarine Engineering, a Vancouver-based company “specializing in advanced autonomous underwater and remotely operated systems for the maritime domain,” the company announced.
The acquisition, announced Tuesday, represents an expansion for the Israeli defense giant into underwater autonomous systems.
“ISE’s underwater technologies will further strengthen our position as a global provider of comprehensive, integrated maritime solutions,” Elbit President and CEO Bezhalel Machlis said in a company statement.
ISE was founded in 1974 and has worked on underwater robotics as well as autonomous and remotely operated systems.Elbit noted that the Canadian company has “delivered over 250 underwater vehicles to customers in more than 20 countries worldwide.”
Machlis, according to the statement, noted that the acquisition would build on the company’s “existing capabilities in naval electronic warfare, autonomous systems, naval precision munitions and maritime mission systems.”
Saar Koursh, Elbit’s senior vice president and general manager of Elbit Naval Systems said in a statement to Breaking Defense that “the maritime domain is an important growth area for Elbit Systems, and we continue to expand our capabilities to meet evolving operational needs.”
The addition of autonomous underwater capabilities through the acquisition complements Elbit’s existing Seagull unmanned surface vessel (USV), Koursh said. He added that the acquisition of ISE will enable Elbit to provide “naval forces with a complete multi-domain autonomous ecosystem, integrating UAVs, USVs and AUVs into a single mission framework.”
Elbit’s maritime systems also include “integrated command-and-control (C2) suites, electro-optical and sonar systems, communications and electronic warfare technologies,” Tuesday’s statement said.
Koursh explained that “this enables customers to deploy coordinated air, surface and underwater autonomous assets as part of one end-to-end operational solution, while also offering standalone systems tailored to specific customer needs.”
The Israeli company did not disclose the cost of the acquisition but noted it was “completed for a purchase price that is not material to Elbit Systems.”
The announcement comes as Elbit — along with Israel’s other defense giants — has seen record sales in recent years. In its second quarter financial report, released in August, it said it had revenues of $2.3 billion and a record order backlog of $32 billion.
Elbit has also been focused in recent years on expanding its naval systems in the autonomous and unmanned realm. The company foresees the acquisition of ISE expanding its capabilities in underwater intelligence, surveillance and reconnaissance (ISR) as well as mine counter measures and anti-submarine warfare.
The Israeli defense giant has been developing unmanned surface vessels over the last decade, developing a 12-meter and 20-meter version of its Seagull USV. Seagull has been outfitted to conduct mine clearance and anti-submarine warfare capabilities. In 2022 Seagull was sent to US Central Command’s Digital Horizon event in the Persian Gulf as part of a CENTCOM initiative to showcase the use of new unmanned systems. In a recent video, Elbit showcased the development of the USVs to conduct scanning and strikes at sea.
“One of Elbit’s important milestones has been the successful deployment of unmanned vessels in active military operations. Today, dozens of its USVs are in service worldwide with additional currently under production,” Elbit said in a 2025 statement. “These real-world deployments showcase how autonomous systems aim to safeguard maritime security while keeping personnel out of harm’s way.”
Elbit has expanded its work on naval solutions to other countries besides Canada. In February, Elbit and Germany’s TKMS said they had inaugurated a new production line in Israel for submarine components. In May, they signed an MOU for a “strategic framework agreement to explore opportunities for cooperation in the development, integration and commercialization of advanced naval defense solutions.”