VisionWave (VWAV) has agreed to invest up to $17.5 million in Foresight Autonomous (FRSX) through a stock-for-equity transaction that would give it a controlling 52% stake in the company, Foresight said Monday.

The partnership will combine Foresight's high-resolution visible light, infrared and neuromorphic sensor technologies with VisionWave's artificial intelligence and radio-frequency perception systems to develop tools for defense and security applications, the company said.

Under the deal, VisionWave will initially acquire a 46% stake in Foresight in exchange for VisionWave shares valued at about $15.5 million, Foresight said.

VisionWave would receive an additional 6% stake, valued at about $2 million, upon the achievement of a commercial milestone tied to a pilot project using the combined perception platform, Foresight added.

The transaction implies a post-investment valuation of about $34 million for Foresight.

Shares of Foresight were 31% higher in Monday premarket activity, while VisionWave shares were up 5.5%.