Israeli defense technology firm Kela Technologies has completed its first acquisition, purchasing the artificial intelligence startup Pelanor. The deal is intended to enhance Kela's development of a military operating system designed to integrate commercial technology for modern defense applications.
While the financial terms were not officially released, reports in the Hebrew press estimate the value of the acquisition to be between $20 million and $30 million. This move brings Pelanor's specialized AI and cloud computing expertise into Kela's strategic operations.
Key Takeaways
- Kela Technologies, an Israeli defense firm, has acquired AI startup Pelanor.
- The deal is estimated to be valued between $20 million and $30 million.
- The acquisition adds 15 engineers with expertise in AI and cloud computing to Kela's team.
- Kela is developing a military operating system to integrate commercial tech for Western armed forces.
- Pelanor's technology specializes in AI-driven management of cloud computing expenses.
Details of the Acquisition
Kela Technologies confirmed the acquisition of Pelanor, marking its first corporate purchase since its founding. The move is a strategic step to incorporate advanced AI capabilities into its core product, a software platform for military use.
The acquisition brings Pelanor's entire team of 15 engineers into the Kela organization. Hamutal Meridor, co-founder of Kela, highlighted the value of this new talent.
"With this acquisition, we are adding 15 very talented engineers with amazing talent and one of the strongest teams out there today with cloud and AI expertise," Meridor stated.
The transaction underscores Kela's focus on rapidly building its technological foundation to serve the needs of modern military forces.
Background on Pelanor
Pelanor was established in late 2022 by alumni of the Israeli military's elite intelligence Unit 8200: Matan Mates (CEO), Ido Kotler (CPO), and Yotam Tanay (CTO). The Tel Aviv-based startup developed an AI platform designed to help companies manage and reduce their cloud computing costs by automatically identifying and analyzing expenditures.
Kela's Mission and Technology
Kela Technologies was founded in July 2024 and emerged from stealth mode in March 2025. The company's primary objective is to create a versatile military operating system that allows Western armed forces to seamlessly integrate commercial off-the-shelf technologies into their existing defense infrastructure.
This includes integrating devices like tablets, commercial sensors, and radars with legacy military systems, a process that is often complex and slow. Kela's software platform aims to simplify and accelerate this integration, enhancing battlefield awareness and operational efficiency.
The Founding Team's Expertise
Kela's leadership team brings extensive experience from both the military and technology sectors. This unique blend of skills is central to the company's vision.
- Hamutal Meridor (President): A veteran of Unit 8200, former partner at Vintage Investment Partners, and previously the head of Palantir's Israel operations.
- Alon Dror (CEO): A graduate of the Talpiot military program who served as a tank commander and later at Israel’s Directorate of Defense R&D (Mafat), where he was awarded the Israel Defense Prize.
- Omer Bar-Ilan: A serial entrepreneur and engineer who previously led algorithm development at Rafael Advanced Defense Systems.
- Jason Manne: An aeronautical engineer with a decade of experience in weapons development for the Israeli Air Force.
Strategic Investment
Earlier in 2025, Kela Technologies secured funding from prominent U.S. venture capital firms Sequoia Capital and Lux Capital. The company also received investment from IQT, the non-profit strategic investment firm that supports the U.S. Central Intelligence Agency (CIA) and the broader U.S. intelligence community.
Strategic Goals and Market Outlook
The founders of Kela have a stated vision to position Israel as a central hub for defense technology innovation for Western nations. The acquisition of Pelanor is a key part of this strategy, strengthening the company's technical offerings as it prepares to enter the global market.
Kela is actively preparing to compete for defense contracts in the United States and with allied militaries across Europe. The company plans to deploy its platform to help these forces modernize their capabilities by leveraging readily available commercial technology.
This expansion effort comes at a time of shifting dynamics in the global defense market. Some European nations have reportedly canceled arms deals with established Israeli defense contractors like Elbit Systems and Rafael. This is attributed to international criticism regarding Israel's military operations in Gaza.
Kela's focus on software and integration of commercial technology may position it differently in the market compared to traditional hardware-focused defense firms, potentially navigating these geopolitical complexities in a new way.
The Role of AI in Modern Defense
The acquisition of an AI-focused company like Pelanor highlights a growing trend in the defense industry. Modern military operations increasingly rely on processing vast amounts of data from diverse sources, including sensors, drones, and intelligence feeds.
Artificial intelligence is critical for analyzing this data in real-time to provide commanders with actionable insights. Pelanor's expertise in AI-driven analysis, though originally applied to cloud finances, is transferable to the complex data challenges of the modern battlefield.
By integrating Pelanor's team, Kela aims to build a more intelligent and responsive operating system. This system could potentially automate data fusion, identify threats more quickly, and optimize resource allocation during military operations, giving allied forces a significant technological advantage.
