Key Takeaways
- Pre-market trading saw ONDS stock decline roughly 5% to approximately $8.55 following the acquisition announcement
- The company will purchase Aran Defense for around $33M via cash or stock, representing 1.3x projected 2026 revenues
- Aran Defense generated $17M in 2025 sales, 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 to Ondas
- Completion of the acquisition is anticipated in Q3 2026
Shares of Ondas (ONDS) declined by roughly 5% to about $8.55 during Tuesday’s pre-market session following news that the company reached an agreement to purchase Aran Defense for around $33 million.
The transaction values Aran Defense at approximately 1.3 times its anticipated 2026 revenue figures. Ondas will fund the purchase through either cash or its common shares, 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 business caters to Israeli government clients and collaborates with global defense contractors.
Through this transaction, Ondas gains access to about 4,400 square meters of engineering and production space spread across three Israeli locations. The primary facility spans approximately 2,800 square meters, while two additional sites contribute roughly 1,600 square meters combined.
These locations house CNC machining operations, electromechanical assembly lines, 3D printing technology, secure production areas, and prototype development capabilities, among other manufacturing resources.
Growing Revenue Trajectory
In 2024, Aran Defense recorded $12M in sales. This figure jumped to $17M during 2025, and projections suggest the business will reach approximately $26M in 2026 while achieving positive adjusted EBITDA.
According to CEO Eric Brock, the deal centers on accelerating growth and operational 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 facilities are planned to handle manufacturing of counter-drone technologies, intelligence surveillance reconnaissance platforms, loitering munitions, and autonomous aerial and ground robotic solutions.
Strategic Implications for Ondas
Oshri Lugassy, co-CEO of Ondas Autonomous Systems, emphasized that Aran’s engineering capabilities are critical for fulfilling current contract obligations.
“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, increasing order volumes and an expanding backlog within its defense segment drove the strategic decision. The company seeks enhanced oversight of supply chain operations, quality assurance, and timeline management.
Aran Defense’s established relationships within Israel’s defense sector are viewed as valuable for accessing future program opportunities.
Additionally, Ondas intends to leverage its global footprint to help Aran penetrate allied defense markets beyond Israeli borders.
The transaction is scheduled to finalize during the third quarter of 2026. When the deal was made public, ONDS stock was changing hands at roughly $8.55, reflecting a pre-market decrease of about 5%.
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