Eric Trump is among a group of investors supporting a $1.5 billion merger between Israel-based drone manufacturer Xtend and U.S.-based JFB Construction Holdings, according to a company press release issued Tuesday.
The deal includes a $152 million investment commitment, with $42 million funded at signing, per a securities filing. The transaction is expected to close in mid-2026.
Investors in the merger include drone manufacturer Unusual Machines, where Donald Trump Jr. is a stakeholder and advisory board member. Other backers include American Ventures, Israel-based Protego Ventures, Aliya Capital and Agostinelli Group.
Upon closing, the combined company will be renamed Xtend AI Robotics and list on the Nasdaq under the ticker symbol XTND.
Founded in 2018 and headquartered in Tel Aviv, Xtend produces autonomous drones powered by artificial intelligence for defense and security applications. The company established a U.S. headquarters and manufacturing facility in Tampa, Florida, in July 2025 to support growing domestic defense demand.
Xtend has secured contracts with the U.S. Department of Defense, including a multimillion-dollar firm-fixed-price agreement awarded in November 2025. Under that structure, the company assumes maximum cost responsibility, limiting financial exposure for the federal government.
According to a prior company press release, Xtend will supply small tactical team operators with “lethal” unarmed aerial drones designed to assist in precision strikes and survivability in irregular warfare environments. The company will also provide training, maintenance and production support from its Tampa facility.
The Defense Department contract aligns with a July 2025 drone directive issued by Defense Secretary Pete Hegseth, which aims to provide the agency “lethality at low cost-per-kill,” the drone maker said in the release. The directive supports broader executive actions intended to accelerate domestic drone manufacturing and reduce U.S. reliance on foreign suppliers.
Xtend is also among 25 vendors selected for the Defense Department’s Drone Dominance Program, part of an acquisition reform effort to scale low-cost attack drones and strengthen the defense industrial base under the “Arsenal of Freedom” initiative.
The merger is structured to combine Xtend’s AI-driven operating system and drone hardware with JFB’s construction, infrastructure and buildout expertise, positioning the company to scale advanced manufacturing capabilities in the U.S.
“What drew us to XTEND is the strength and scalability of its AI-driven operating system,” JFB CEO Joseph Basile III said in a statement. “By pairing Xtend’s operating system and advanced AI capabilities with JFB’s execution, infrastructure, and buildout expertise, we see a clear opportunity to accelerate US manufacturing, scale production responsibly, and support a next-generation defense technology platform built in America and ready for the public markets.”
The transaction also expands Xtend’s global footprint, with anticipated growth in India, Mexico, Germany, the United Arab Emirates and Japan, according to securities filings.
JFB recently appointed Stefan Passantino, who served as deputy assistant to the president and deputy counsel during former President Donald Trump’s first term, to its board, further linking the venture to Trump-aligned leadership.
The merger reflects a growing convergence between defense technology, AI-driven robotics and domestic construction capabilities. As federal agencies prioritize rapid drone deployment and scalable production, partnerships between defense startups and infrastructure-focused firms are becoming more common.
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At the same time, the involvement of the Trump family underscores the political dimension surrounding U.S. defense manufacturing policy. The administration has emphasized reshoring advanced manufacturing, strengthening domestic supply chains and accelerating acquisition reform within the Pentagon.
If completed, the deal would create a publicly traded defense robotics platform valued at $1.5 billion, combining military-grade drone technology with U.S.-based production capacity. Analysts say the success of the merged company will depend on sustained Defense Department demand, regulatory approvals and its ability to scale manufacturing while navigating geopolitical sensitivities tied to international operations.
With its planned Nasdaq debut, Xtend AI Robotics is positioning itself at the intersection of defense innovation, AI software and construction-backed industrial expansion — sectors expected to draw significant federal investment in the years ahead.
Originally reported by Sara Samora, Reporter in Construction Dive.
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