Ondas Expands Drone and Defense Manufacturing Capacity with Israeli Acquisition
Tel Aviv, Tuesday, 18 August 2026.
On August 18, 2026, Ondas agreed to acquire Israel-based Aran Defense for $33.9 million in stock, expanding local manufacturing to meet rising global demand for autonomous systems.
Transaction Structure and Valuation Details
The acquisition agreement stipulates an all-stock transaction valued at approximately $33 million, equivalent to NIS 100 million [2][3]. Payment will be executed through the issuance of Ondas shares, calculated based on the average share price during the five trading days preceding allocation [2][4]. To secure obligations under the agreement, 10% of the consideration will be held in escrow for a period of 18 months [2][4]. This valuation represents approximately 1.3 times Aran Defense’s expected revenue for 2026 [1]. Aran Defense is projected to record a pre-tax profit of approximately NIS 75 million upon completion of the transaction [3].
Strategic Leadership and Market Context
This transaction marks Ondas’s sixth acquisition in Israel and its first purchase of operations from a company traded on the Tel Aviv Stock Exchange [2][3]. The deal follows the recent appointment of David Barnea, former head of the Mossad, as Chairman and Global President of Ondas on August 3, 2026 [2][3]. Negotiations for the acquisition commenced on March 25, 2026, with Aran delaying disclosure to protect deal terms during the process [2]. Ondas has seen its share price rise approximately 145% over the 12 months preceding the announcement, reaching roughly $9.80 [2]. The company reported second-quarter 2026 revenue of $83.8 million, a significant increase from $50.1 million in the first quarter, representing a growth rate of 67.265 [4][5].
Operational Capabilities and Closing Timeline
Aran Defense operates approximately 4,400 square meters of engineering and manufacturing facilities in Israel, including a main 2,800-square-meter site [1]. The infrastructure supports CNC machining, electromechanical assembly, classified production space, and 3D printing, which will integrate with Ondas counter-UAS and autonomous systems portfolios [1][4]. Ondas expects to close the acquisition during the third quarter of 2026, subject to regulatory approvals including authorization from the Israel Competition Authority [1][3]. [alert! ‘Specific closing date not provided, only Q3 2026 window’]. Post-transaction, Aran will retain its equipment business and environmental activities while adhering to a four-year non-compete clause in defense activities sold to Ondas [2].