Key Highlights
- Ondas (ONDS) completed a strategic acquisition of Israel’s GATE Technologies and Bron Technologies with $205 million paid initially
- Additional performance-based payments could reach $185 million by 2028, valuing the transaction at $390 million total
- GATE specializes in Electronic Safe & Arm Devices and precision fuzing systems for military applications including UAVs and munitions
- Revenue projections for GATE show $65 million in 2026, accelerating to $180 million by 2028
- Shares of ONDS climbed 2.01% to $7.375 on the acquisition news
Ondas Inc. (ONDS) revealed Monday that it has completed the purchase of Israeli defense contractor GATE Technologies Ltd. along with its related entity Bron Technologies in a deal structured at $205 million initially, with additional earn-out provisions potentially adding $185 million based on achieving specific performance milestones through 2028, establishing a maximum transaction value of $390 million.
Shares of ONDS advanced 2.01% to reach $7.375 in trading following the disclosure.
The initial consideration consists of $105 million delivered in cash alongside $100 million worth of Ondas common stock, with adjustments for working capital included. Future earn-out compensation may be settled through either cash payments or additional Ondas equity, depending on company preference.
Established in 2006, GATE Technologies specializes in manufacturing Electronic Safe & Arm Devices (ESADs) along with sophisticated electronic fuzing technology. These critical components serve precision weaponry applications spanning rockets, missiles, unmanned aerial vehicles and loitering munition systems. GATE’s technological solutions have been incorporated into numerous weapon platforms worldwide.
The company’s flagship RUBI product series has been adapted for approximately 100 distinct configurations spanning multiple weapon system architectures.
Financial Projections and Profitability Outlook
Ondas anticipates GATE will produce $65 million in annual revenue during 2026, with expectations for rapid expansion to $180 million by 2028. Management forecasts the newly acquired operations will deliver over $130 million in cumulative adjusted EBITDA spanning the period through 2028.
Eric Brock, Chairman and CEO at Ondas, highlighted critical market dynamics: “ESAD components face significant supply limitations currently, with qualified manufacturing capacity representing a critical constraint across the entire precision-strike supply infrastructure.”
Brock emphasized that Ondas intends to deploy capital toward expanding GATE’s production capacity, technical capabilities and international presence to accommodate additional clients and defense programs.
International Presence and Domestic Expansion
Roughly 80% of GATE’s current revenue originates from markets beyond the Middle East region. The acquisition of Poland-based Bron Technologies provides Ondas with an operational platform for serving European defense customers and allied nations.
The company disclosed it has initiated development of United States-based engineering and manufacturing infrastructure, targeting delivery of domestically-produced products during the first half of 2027.
Market fundamentals appear favorable for the acquisition. According to MarketsandMarkets research referenced by Ondas, the global loitering munition sector is forecast to expand from approximately $5.4 billion in 2025 to roughly $13.3 billion by 2030.
As part of the transaction, Ondas authorized stock options covering 300,000 units priced at $7.23 per share for 41 new employees joining through the acquisition, issued under the company’s 2026 Inducement Plan.
ONDS shares were quoted at $7.375, representing a gain of $0.145 when the acquisition was announced.
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