Tessera pays $1 million to secure option on tethered aerostat maker RT

Terms of the option

According to Tessera, the $1 million will be credited toward the purchase of the equity stake if the company decides to exercise the option, and refunded if it does not. The option was announced on September 24, 2026, and can be exercised solely at Tessera's discretion, subject to completion of due diligence and other approvals.

The purchase price will be based on the lower of a $13 million equity value or a formula tied to RT's average revenue and EBITDA over 2026, 2027 and 2028. The formula uses audited financial results and is structured as an earnout. If Tessera exercises the option, it expects to fund the purchase through the expanded Mandragola credit facility, proceeds from its at-the-market equity offering program and/or other sources.

Tessera says it is continuing its due diligence on RT during the option period, including validating RT's asserted backlog and other pipeline projects to Tessera's satisfaction.

Under the agreement, RT is also to enter into a non-exclusive, perpetual license of its technology with Tessera within 60 days after the date of the agreement, whether or not the option is exercised. Tessera says the license could allow data from RT's airborne platforms to integrate with its broader sensing and response systems even if the acquisition is not completed.

What RT builds

RT develops and manufactures the Skystar™ and SkyGuard™ families of tethered aerostat systems. These are helium-filled, lighter-than-air platforms that can stay aloft for extended periods while carrying payloads such as day/night cameras, infrared sensors, radar and communications systems. Listed missions include border protection, strategic-site security, coastal and maritime surveillance, force protection, public safety, large-scale events and search and rescue.

According to RT, its systems have accumulated more than six million operational hours worldwide. Current customers include Elbit Systems and the Israel Police, and systems are also deployed by security forces in the United States, Mexico, Australia, France and other countries. RT says that as of October 15, 2026 it had approximately $15 million in backlog, including an active multi-million-dollar contract with the UAE as part of a large-scale border-protection project. Tessera notes it is still validating these claims.

Tessera argues that tethered aerostats fill a distinct niche. Unlike manned aircraft or most unmanned aerial vehicles, which need frequent refueling and recovery cycles, tethered systems can provide continuous, wide-area observation from height, potentially at a lower cost per hour of coverage. The tether supplies power and high-bandwidth data connectivity.

Strategy and market context

Tessera describes its approach as a Predict, Sense, Analyze, Decide, Act architecture. The company says RT's platforms would extend that framework into continuous elevated coverage for borders, critical infrastructure and other large areas. It also points to recent progress at its Zorronet subsidiary, which has reported new deployments of its AI intelligence platform across Israeli kibbutzim, energy sites, rail operations, military locations and command centers.

"If we determine that exercise of the option is in our stockholders' best interest subject to satisfactory due diligence, management believes that RT would add an entirely new dimension to what we are building at Tessera," said Michael Oster, CEO of Tessera. He added that RT would expand the company's sensor arsenal and support its push deeper into homeland security, and described RT's UAE activity as an example of how regional cooperation is creating opportunities in areas such as border protection.

Citing industry research, Tessera says the global aerostat systems market was valued at approximately $2.35 billion in 2025 and is projected to reach $6.49 billion by 2035, a compound annual growth rate of about 10.7%. Tethered systems accounted for the majority of the market, driven by demand for persistent surveillance in border protection, military ISR and critical infrastructure.

What it means

The payment keeps the deal open but does not commit Tessera to buying RT. The company has the 90-day window to finish due diligence and decide, and the final price depends on RT's audited results through 2028. Tessera's own risk disclosures say it may choose not to exercise the option, may acquire a different percentage, or that the price and earnout structure may differ from current expectations. For now, the main concrete outcome is the planned technology license, which could connect RT's aerostat data with Tessera's security platform whatever the decision on the stake.