Institutional Investors Show Confidence in TSG with NIS 103.5 Million Private Placement

TSG, leading developer of advanced software systems and technological solutions for the defense and civilian sectors, announced it has successfully raised approximately NIS 103.5 million through a private placement of shares and options to institutional investors. The round was led by Menora Mivtachim and Mor Investment House, two of Israel’s largest and most respected financial institutions.

The capital raised will accelerate TSG’s strategic acquisition program across core and adjacent markets and support the expansion of its solutions and services portfolio.

As part of the transaction, Menora Mivtachim invested roughly NIS 74.5 million, acquiring an 8.5% equity stake and becoming a significant shareholder. Mor Investment House invested about NIS 23.3 million through its pension and provident funds for a 2.65% stake. Ayalon Insurance and Ilim Mutual Funds also participated, investing NIS 2.8 million each. In total, TSG issued 318,308 shares at NIS 325 per share, representing 11.8% of the company’s share capital.

The issued warrants carry an exercise price of NIS 405 per share, valid until October 1, 2027, and could generate an additional NIS 64.5 million if fully exercised.

Since its IPO last year, TSG’s share price has risen by approximately 120% in 2025, with a current market capitalization of around NIS 860 million.

The money will support TSG's growth strategy with significant capital infusion to drive acquisitions and innovation.

According to TSG CEO Arik Kilman, “This investment round, led by some of Israel’s most reputable institutional investors, is a clear expression of trust in TSG’s vision, performance, and long-term growth strategy. The strengthened financial base enhances our flexibility to pursue strategic acquisitions while continuing to deliver innovative technology solutions for defense and civilian markets alike.”

Earlier this month, TSG completed the acquisition of Eshed Asset Management Ltd. for approximately NIS 44 million, reinforcing its expansion into the municipal technology sector and broadening its reach among local authorities and public institutions.

In Q2 2025, TSG reported a 35% year-over-year increase in revenue to NIS 105 million, alongside a 47% rise in net profit to NIS 6.4 million.

About TSG

TSG is a global, publicly traded company specializing in advanced solutions for mission critical environments. Operating across defense, homeland security, and civil sectors, TSG delivers innovative, multi-domain solutions that drive operational superiority through real-time intelligence, rapid response, and precise threat detection. Our robust portfolio includes end-to-end systems and support services that ensure reliability, scalability, and long-term performance. TSG also provides advanced solutions for government, public and municipal 

sector entities, enhancing their service efficiency, digital transformation and emergency readiness. Among the company’s clients are the Israeli Ministry of Defense, leading defense

industries worldwide, and approximately 160 local authorities and government ministries across the country. The company employs approximately 900 people, and its headquarters are in Or Yehuda, Israel.