Foresight Autonomous Holdings Ltd. (NASDAQ: FRSX) announced it signed a non-binding term sheet for a strategic investment and technology integration with VisionWave Holdings, Inc. (NASDAQ: VWAV).

Under the proposed terms, VisionWave would acquire between 45% and 51% of Foresight's outstanding shares in exchange for approximately $17.5 million in VisionWave common stock. The transaction would be completed in staged closings, with pricing based on a five-day volume weighted average price mechanism.

The collaboration aims to integrate Foresight's 3D perception systems into VisionWave's defense and security products. Foresight's technology includes high-resolution visible light and infrared sensors, along with neuromorphic event-based sensor capabilities designed for low-latency detection in various lighting conditions.

VisionWave would receive board representation on Foresight's board, starting with two seats and potentially adding a third. Both companies would remain independent and publicly traded entities.

The integration targets several VisionWave product categories including unmanned aerial vehicles, the Varan unmanned ground vehicle, tactical unmanned aircraft systems, and counter-drone systems. The combined solution is intended for applications in counter-UAV operations, robotics, perimeter security, and infrastructure protection.

The transaction requires definitive agreements, expected within 30 days of the April 19, 2026 term sheet signing. Additional conditions include completion of due diligence, regulatory approvals, stock exchange approvals, shareholder approvals, and other customary closing requirements.

Foresight develops 3D perception systems and cellular-based applications through subsidiaries including Foresight Automotive Ltd. and Eye-Net Mobile Ltd. VisionWave focuses on AI-driven sensing and autonomy technologies for defense and commercial applications.