The Hidden Trillion-Dollar Boom You're Missing!

Hi, I'm Amy Shapiro, journalist at CEK. Hi, I'm Amy Shapiro, journalist at CEK. We're here today at the Defense Tech We're here today at the Defense Tech We're here today at the Defense Tech Expo 2026 in Tel Aiv. I'm joined by Expo 2026 in Tel Aiv. I'm joined by Expo 2026 in Tel Aiv. I'm joined by Manny Shalom, the CEO of T3 Defense. Manny Shalom, the CEO of T3 Defense. Manny Shalom, the CEO of T3 Defense. Manny, thank you so much for joining us Manny, thank you so much for joining us Manny, thank you so much for joining us today. today. today. >> Thank you for having me. Thank you so >> Thank you for having me. Thank you so >> Thank you for having me. Thank you so much. much. much. >> It's an absolute pleasure. Um, to start >> It's an absolute pleasure. Um, to start >> It's an absolute pleasure. Um, to start off with, can you talk us through the uh off with, can you talk us through the uh off with, can you talk us through the uh the kind of mission statement of T3 the kind of mission statement of T3 the kind of mission statement of T3 Defense? So I've started the journey

Defense? So I've started the journey Defense? So I've started the journey almost three years ago just when the war almost three years ago just when the war almost three years ago just when the war in Ukraine was in about four or five in Ukraine was in about four or five in Ukraine was in about four or five months and I what I came to realize we months and I what I came to realize we months and I what I came to realize we are entering a defense era and a defense are entering a defense era and a defense are entering a defense era and a defense era as opposed to other parts is very era as opposed to other parts is very era as opposed to other parts is very interesting it's delayed meaning the interesting it's delayed meaning the interesting it's delayed meaning the minute a war starts or a president says minute a war starts or a president says minute a war starts or a president says he wants a golden dome it takes few he wants a golden dome it takes few he wants a golden dome it takes few years it actually shows in the P&L of years it actually shows in the P&L of years it actually shows in the P&L of companies so that's number one number companies so that's number one number companies so that's number one number two defense cycles are very long. So

two defense cycles are very long. So two defense cycles are very long. So once you start buying defense, it's once you start buying defense, it's once you start buying defense, it's going to take five, seven, 10 years. And going to take five, seven, 10 years. And going to take five, seven, 10 years. And number three, there is no sensitivity to number three, there is no sensitivity to number three, there is no sensitivity to price. If we need a tank or a submarine price. If we need a tank or a submarine price. If we need a tank or a submarine or an anti- drone, we buy it whatever or an anti- drone, we buy it whatever or an anti- drone, we buy it whatever the price is. Think of all the the price is. Think of all the the price is. Think of all the congressional hearing of overspending congressional hearing of overspending congressional hearing of overspending according to budget. So there is no according to budget. So there is no according to budget. So there is no sensitivity to price, long cycle and sensitivity to price, long cycle and sensitivity to price, long cycle and delayed. So I thought it's a very good

delayed. So I thought it's a very good delayed. So I thought it's a very good story for a public company. That's where story for a public company. That's where story for a public company. That's where I started. And what T3 defense started I started. And what T3 defense started I started. And what T3 defense started as identifying the right parameters of as identifying the right parameters of as identifying the right parameters of what would be a good acquisition target. what would be a good acquisition target. what would be a good acquisition target. I have identified 22 criteria and based I have identified 22 criteria and based I have identified 22 criteria and based on that we I have identified 440 on that we I have identified 440 on that we I have identified 440 potential target companies worldwide 60% potential target companies worldwide 60% potential target companies worldwide 60% in the US about 30 in Israel and the in the US about 30 in Israel and the in the US about 30 in Israel and the rest of the world ownership revenue rest of the world ownership revenue rest of the world ownership revenue profitability sector and those could be profitability sector and those could be profitability sector and those could be very boring parts and let me give you an

very boring parts and let me give you an very boring parts and let me give you an example 40% of the companies we look at example 40% of the companies we look at example 40% of the companies we look at are metal processing very old school are metal processing very old school are metal processing very old school industrial processes but if you build a industrial processes but if you build a industrial processes but if you build a submarine or a tank or a drone, submarine or a tank or a drone, submarine or a tank or a drone, everybody starts with a taking a metal everybody starts with a taking a metal everybody starts with a taking a metal and shaping it. And those metal and shaping it. And those metal and shaping it. And those metal processing company today have a backlog processing company today have a backlog processing company today have a backlog of 15 years. 15 years to process the of 15 years. 15 years to process the of 15 years. 15 years to process the orders they have. So it's a very orders they have. So it's a very orders they have. So it's a very exciting industry. Now as opposed to

exciting industry. Now as opposed to exciting industry. Now as opposed to other industries, defense is very uh other industries, defense is very uh other industries, defense is very uh robust in the sense that many different robust in the sense that many different robust in the sense that many different parts we invest in uh industrial parts we invest in uh industrial parts we invest in uh industrial companies, we invest in application companies, we invest in application companies, we invest in application companies, we invest in software companies, we invest in software companies, we invest in software businesses. So you have to understand in businesses. So you have to understand in businesses. So you have to understand in different things as opposed to um different things as opposed to um different things as opposed to um biotech where you you talk molecules biotech where you you talk molecules biotech where you you talk molecules here you need to understand a lot of here you need to understand a lot of here you need to understand a lot of different moving parts all of them are different moving parts all of them are different moving parts all of them are part of a big picture and that's what T3

part of a big picture and that's what T3 part of a big picture and that's what T3 uh defense is looking to do is to uh defense is looking to do is to uh defense is looking to do is to imagine the modern battlefield to imagine the modern battlefield to imagine the modern battlefield to understand what would be the moving understand what would be the moving understand what would be the moving parts there and try to identify what parts there and try to identify what parts there and try to identify what would be the relevant building blocks of would be the relevant building blocks of would be the relevant building blocks of that and what we do is we go and buy that and what we do is we go and buy that and what we do is we go and buy those building blocks because we think those building blocks because we think those building blocks because we think that the battlefield will make all those that the battlefield will make all those that the battlefield will make all those building blocks go and and we provide building blocks go and and we provide building blocks go and and we provide them financing, we provide them them financing, we provide them them financing, we provide them management and marketing and we try to management and marketing and we try to management and marketing and we try to explode them in a good way meaning to explode them in a good way meaning to explode them in a good way meaning to give them what they need in order to give them what they need in order to give them what they need in order to grow globally. grow globally. grow globally. >> Right. And and so T3 is like a massive

>> Right. And and so T3 is like a massive >> Right. And and so T3 is like a massive holding company responsible for the the holding company responsible for the the holding company responsible for the the companies that we see here behind us. If companies that we see here behind us. If companies that we see here behind us. If you were to summarize what is your kind you were to summarize what is your kind you were to summarize what is your kind of acquisition ethos, what is it that of acquisition ethos, what is it that of acquisition ethos, what is it that really makes a defense company stand out really makes a defense company stand out really makes a defense company stand out to you? to you? to you? >> So the strategy is or the think process >> So the strategy is or the think process >> So the strategy is or the think process starts with us identifying the starts with us identifying the starts with us identifying the battlefield. We break down. So let's battlefield. We break down. So let's battlefield. We break down. So let's take the US submarine. Uh the the take the US submarine. Uh the the take the US submarine. Uh the the Ministry of War in the US announced Ministry of War in the US announced Ministry of War in the US announced they're going to new uh submarine for they're going to new uh submarine for they're going to new uh submarine for the US. So we would have a think group the US. So we would have a think group the US. So we would have a think group that would start on understanding how do that would start on understanding how do that would start on understanding how do you build a submarine? What are the you build a submarine? What are the you build a submarine? What are the different components? Usually there are different components? Usually there are different components? Usually there are something like 2,000 subcontractors.

something like 2,000 subcontractors. something like 2,000 subcontractors. About 15 or 20 of them are About 15 or 20 of them are About 15 or 20 of them are irreplaceable, meaning it's going to be irreplaceable, meaning it's going to be irreplaceable, meaning it's going to be very expensive to replace them. And what very expensive to replace them. And what very expensive to replace them. And what we do is we try to identify those we do is we try to identify those we do is we try to identify those irreplaceable ones and try and buy them. irreplaceable ones and try and buy them. irreplaceable ones and try and buy them. So the strategy is to buy something that So the strategy is to buy something that So the strategy is to buy something that is going to be a very long-term contract is going to be a very long-term contract is going to be a very long-term contract and find the unique uh partners, the and find the unique uh partners, the and find the unique uh partners, the unique subcontractors that were going to unique subcontractors that were going to unique subcontractors that were going to be that and we try to come up with a be that and we try to come up with a be that and we try to come up with a cohesive coherent story of what would be cohesive coherent story of what would be cohesive coherent story of what would be uh part of that and we always look for uh part of that and we always look for uh part of that and we always look for those synergies inside of the group and those synergies inside of the group and those synergies inside of the group and outside with potential new customers. outside with potential new customers. outside with potential new customers. And finally, Manny, what uh for you and And finally, Manny, what uh for you and And finally, Manny, what uh for you and and your companies, what are the unique and your companies, what are the unique and your companies, what are the unique uh challenges and opportunities of uh challenges and opportunities of uh challenges and opportunities of building a defense startup, a defense building a defense startup, a defense building a defense startup, a defense company in Israel? company in Israel? company in Israel? >> So many many public companies or

>> So many many public companies or >> So many many public companies or investors in general are very investors in general are very investors in general are very financially oriented, meaning they come financially oriented, meaning they come financially oriented, meaning they come with they start with the Excel file, how with they start with the Excel file, how with they start with the Excel file, how much they make, what's going to be the much they make, what's going to be the much they make, what's going to be the multiples and so on and so forth. We try multiples and so on and so forth. We try multiples and so on and so forth. We try to take a more strategic view to take a more strategic view to take a more strategic view understanding uh more than that. It's understanding uh more than that. It's understanding uh more than that. It's not just how the numbers are going to not just how the numbers are going to not just how the numbers are going to shift. It's also a lot about the people, shift. It's also a lot about the people, shift. It's also a lot about the people, a lot about the interconnectivity with a lot about the interconnectivity with a lot about the interconnectivity with other holding companies, um, with the other holding companies, um, with the other holding companies, um, with the market, with our competitors. Uh, again, market, with our competitors. Uh, again, market, with our competitors. Uh, again, a lot of people are today are investing a lot of people are today are investing a lot of people are today are investing in defense. We try to really look at the in defense. We try to really look at the in defense. We try to really look at the at the actual underlying product that is at the actual underlying product that is at the actual underlying product that is going to be part of a bigger picture, going to be part of a bigger picture, going to be part of a bigger picture, not just the Excel file. Again, I think not just the Excel file. Again, I think not just the Excel file. Again, I think a lot of good companies are there doing a lot of good companies are there doing a lot of good companies are there doing it. We put a lot of uh a lot of uh uh

it. We put a lot of uh a lot of uh uh it. We put a lot of uh a lot of uh uh weight into the per people aspect and weight into the per people aspect and weight into the per people aspect and what the people are, what they're doing, what the people are, what they're doing, what the people are, what they're doing, how long they've been in business. Um so how long they've been in business. Um so how long they've been in business. Um so we are we are very excited about it. we are we are very excited about it. we are we are very excited about it. It's a very interesting journey. It's a very interesting journey. It's a very interesting journey. >> Absolutely. Well, good luck uh with the >> Absolutely. Well, good luck uh with the >> Absolutely. Well, good luck uh with the rest of your journey. It's been a real rest of your journey. It's been a real rest of your journey. It's been a real pleasure to talk to you today, Manny. pleasure to talk to you today, Manny. pleasure to talk to you today, Manny. >> Thank you so much.