Israel's Elbit Systems acquires Canadian underwater drone company amid rising Russian Arctic threat

Jerusalem Post/Defense & TechElbit Systems' acquisition of Canadian firm ISE strengthens its underwater surveillance, mine countermeasures, and anti-submarine warfare capabilities.Follow us on GoogleInternational Submarine Engineering Ltd. (ISE)'s Explorer Autonomous Underwater Vehicle. ISE was acquired by Israeli defense giant Elbit. Published October 20, 2026.(photo credit: ELBIT SYSTEMS)OCTOBER 20, 2026 15:57Updated: OCTOBER 20, 2026 16:00Israeli defense manufacturer Elbit Systems Ltd. completed the acquisition of Canada-based advanced autonomous underwater company International Submarine Engineering Ltd. (ISE), the company announced on Tuesday.Elbit said the "acquisition was completed for a purchase price that is not material," which means it was not a notable amount of money.ISE specializes in advanced autonomous underwater and remotely operated systems for the maritime domain, which Elbit described as a "high-technology company engaged in the development and manufacture of undersea vehicles, including Autonomous Underwater Vehicles (AUVs) and Remotely Operated Vehicles (ROVs), as well as computer control systems and robotics.""Elbit Systems delivers proven naval capabilities supporting missions ranging from coastal security to blue-water operations," the company said.Acquisition of Canadian naval drone company boosts Elbit's underwater capabilities"The addition of ISE's underwater autonomous technologies is intended to expand Elbit Systems' capabilities in underwater Intelligence, Surveillance and Reconnaissance (ISR), Mine Counter-Measures (MCM) and Anti-Submarine Warfare (ASW), further strengthening the company's end-to-end maritime offering," Elbit added.View of Elbit Systems offices in Jerusalem on December 3, 2024. (credit: Chaim Goldberg FLASH90)"With more than 50 years of experience in subsea robotics, ISE has delivered over 250 underwater vehicles to customers in more than 20 countries worldwide," Elbit said.The Israeli defense giant's naval portfolio includes "unmanned surface vessels, underwater systems, integrated command-and-control (C2) suites, electro-optical and sonar systems, communications, and electronic warfare technologies.""This acquisition marks another milestone in Elbit Systems’ strategy to expand its offerings in the naval domain. Combined with our existing capabilities in naval electronic warfare, autonomous systems, naval precision munitions and maritime mission systems, ISE’s underwater technologies will further strengthen our position as a global provider of comprehensive, integrated maritime solutions," said President and CEO of Elbit Systems, Bezhalel "Butzi" Machlis.Elbit's acquisition of ISE comes as the underwater domain becomes a more critical arena for Canada amid melting ice within the Arctic Circle, which experts have warned may increase the possibility of Russian hostile activity.Follow us on Google