TLDR
- ONDS stock dropped about 5% to ~$8.55 in pre-market trading after the deal was announced
- Ondas agreed to buy Aran Defense for ~$33M in cash or stock, valued at 1.3x expected 2026 revenue
- Aran Defense posted $17M in revenue in 2025, up from $12M in 2024, and is expected to hit $26M in 2026
- The deal adds ~4,400 square meters of engineering and manufacturing space in Israel
- Ondas expects the acquisition to close in Q3 2026
Ondas (ONDS) stock slipped around 5% to roughly $8.55 in pre-market trading on Tuesday after the company announced a deal to acquire Aran Defense for approximately $33 million.
The purchase price represents about 1.3 times Aran Defense’s expected 2026 revenue. Payment will be made in cash or Ondas common stock, subject to standard adjustments.
Aran Defense is the defense-focused division of Aran Ltd., which trades on the Tel Aviv Stock Exchange. It serves government customers in Israel and works with international defense companies.
The deal brings Ondas roughly 4,400 square meters of engineering and manufacturing space across three facilities in Israel. The main site covers around 2,800 square meters, with two smaller facilities adding another 1,600 square meters.
Those facilities include CNC machining, electromechanical assembly, 3D printing, classified production space, and prototype manufacturing, among other capabilities.
Revenue on the Rise
Aran Defense brought in $12M in revenue in 2024. That climbed to $17M in 2025, and the company is projected to generate around $26M in 2026 with positive adjusted EBITDA.
CEO Eric Brock said the acquisition is about speed and scale. “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 said.
The facilities are expected to support production of counter-UAS systems, ISR platforms, loitering munitions, and autonomous aerial and ground robotic systems.
What This Means for Ondas
Oshri Lugassy, co-CEO of Ondas Autonomous Systems, said Aran’s engineering depth is central to the company’s ability to deliver on existing orders.
“This combination is expected to shorten development cycles, strengthen manufacturing readiness and help us deliver integrated autonomous systems at greater scale,” he said.
Ondas said growing order activity and backlog across its defense business made the move necessary. The company wants more direct control over supply chain, quality, and delivery schedules.
Aran Defense’s existing ties to the Israeli defense establishment are also seen as a door opener for new programs.
Ondas also plans to use its international presence to expand Aran’s reach into allied markets outside Israel.
The deal is expected to close during Q3 2026. At the time of the announcement, ONDS stock was trading at approximately $8.55, down around 5% in pre-market activity.
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