Key Takeaways
- Shares of ONDS fell approximately 5% to around $8.55 during pre-market hours following the acquisition announcement
- The company is purchasing Aran Defense for roughly $33M in cash or equity, representing 1.3x anticipated 2026 revenues
- Aran Defense generated $17M in sales during 2025, up from $12M the prior year, with forecasts pointing to $26M in 2026
- The transaction brings approximately 4,400 square meters of Israeli engineering and production facilities into Ondas’s portfolio
- The transaction is anticipated to finalize in the third quarter of 2026
Shares of Ondas (ONDS) declined by approximately 5% to around $8.55 during Tuesday’s pre-market session following the announcement that the company will acquire Aran Defense in a transaction valued at roughly $33 million.
The acquisition price equates to approximately 1.3 times Aran Defense’s projected revenue for 2026. The transaction will be settled through a combination of cash or Ondas equity, with customary closing adjustments.
Aran Defense operates as the defense arm of Aran Ltd., a publicly traded entity on the Tel Aviv Stock Exchange. The division primarily serves Israeli government clients while maintaining partnerships with global defense contractors.
Through this transaction, Ondas gains access to approximately 4,400 square meters of engineering and production capacity spread across three Israeli locations. The primary facility spans roughly 2,800 square meters, complemented by two additional sites totaling 1,600 square meters.
These manufacturing sites house capabilities including CNC machining operations, electromechanical assembly lines, additive manufacturing technology, secure production areas, and prototyping infrastructure.
Financial Performance Shows Strong Growth Trajectory
Aran Defense recorded $12M in revenue during 2024. Sales increased to $17M throughout 2025, with projections indicating the business will reach approximately $26M in 2026 while achieving positive adjusted EBITDA.
Chief Executive Officer Eric Brock emphasized that the deal focuses on accelerating capabilities and expanding capacity. “Aran Defense will provide us with an established production platform in Israel that can support multiple Ondas businesses and programs, allowing us to industrialize products faster,” he stated.
The acquired production infrastructure is positioned to handle manufacturing of counter-drone technology, intelligence surveillance and reconnaissance platforms, loitering munition systems, and autonomous robotic platforms for aerial and ground operations.
Strategic Implications for Ondas
Oshri Lugassy, who serves as co-CEO of Ondas Autonomous Systems, highlighted that Aran’s technical expertise plays a crucial role in fulfilling current customer commitments.
“This combination is expected to shorten development cycles, strengthen manufacturing readiness and help us deliver integrated autonomous systems at greater scale,” he explained.
According to Ondas, increased order flow and expanding backlog within its defense segment drove the strategic decision. The acquisition provides enhanced oversight of supply chain operations, quality assurance processes, and production timelines.
Aran Defense’s established relationships within Israel’s defense ecosystem are expected to facilitate access to additional program opportunities.
Additionally, Ondas intends to leverage its global footprint to extend Aran’s market presence into friendly nations beyond Israel.
The transaction is scheduled to close sometime during the third quarter of 2026. When the deal was made public, ONDS stock was changing hands at roughly $8.55, reflecting a decline of approximately 5% in pre-market trading.
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