Israeli arms dealer Elbit Systems today announced it has acquired International Submarine Engineering Ltd. (ISE), a Canadian company that has received federal government contracts and nearly $1 million in federal grant funding.
In a press release, Elbit said the acquisition will expand its “underwater and maritime autonomy capabilities.” It did not say how much the acquisition cost, stating only that the purchase price “is not material to Elbit Systems.”
In a public statement, Elbit’s president and CEO Bezhalel Machlis said: “This acquisition marks another milestone in Elbit Systems’ strategy to expand its offerings in the naval domain.”
Elbit is Israel’s largest arms company and plays a key role in arming the Israeli military, which is widely accused of committing a genocide in Gaza.
Elbit’s products are integrated into a variety of Israeli warships and other naval vessels. Israel’s naval forces play a key role in maintaining Israel’s maritime blockade of Gaza and have intercepted multiple humanitarian aid flotillas bound for the besieged enclave.
Elbit did not respond to an emailed request for comment from The Maple about its acquisition of ISE.
ISE, which is based in Port Coquitlam, British Columbia, says on its website that it “designs and builds autonomous and remotely operated robotic systems for the most demanding subsea environments.”
Some of its military products include surveillance and “route survey” systems. The company also manufactures autonomous underwater vehicles which it says can be used for “tackling complex survey, scientific, defence, surveillance, and specialized missions around the world.”
ISE has previously obtained contracts with Canada’s Department of National Defence (DND). The contract most recently listed on the federal government’s procurement database was signed in June 2022 for “measuring, controlling, laboratory, medical and optical equipment and parts.”
The company has also received more than $955,000 in federal project funding through DND’s “IDEAS” program.
Neither ISE nor DND responded to emailed requests for comment from The Maple by publication time.
Responding to Elbit’s announcement on X, NDP Leader Avi Lewis said: “It should be illegal for Israel’s top arms producer to purchase a Canadian company.”
“Cancel the Canada-Israel Free Trade Agreement, enact sanctions and a two-way arms embargo now.”
The Centre for Israel and Jewish Affairs (CIJA), however, welcomed the announcement.
Also posting on X, CIJA’s Pacific region vice-president Nico Slobinsky wrote: “Great to see a BC-based company like ISE becoming part of a growing Canadian-Israeli partnership in advanced technology and defence.”
“When Canadian expertise and Israeli innovation work together, the opportunities for jobs, innovation and security are endless.”
In addition to its acquisition of ISE, Elbit also maintains a Canadian subsidiary called Geospectrum Technologies, which also manufactures naval products for defence and surveillance purposes.
Geospectrum has also received federal funding through the IDEAS program.
In March 2024, the Liberal government announced it had paused approvals of new export permits for some military goods to Israel. However, it has continued to allow military products to be shipped to Israel via the United States.
It has also continued to purchase Israeli-made military products, and Canadian Armed Forces and RCMP personnel have continued to work with Israel’s military, including by attending an “international seminar” held in Tel Aviv last year.
