Ondas Inc.ONDS has made another strategic move to strengthen its position in autonomous defense. It has proposed to acquire Aran Defense Ltd., the defense-focused division of Israeli engineering and manufacturing company Aran Ltd, for approximately $33 million in cash or Ondas common stock. The transaction is expected to close in the third quarter of 2026, subject to customary conditions.
Aran Defense operates approximately 4,400 square meters of engineering and manufacturing facilities in Israel. Its capabilities include CNC machining, electromechanical assembly, integration, cabling, classified production, quality control, procurement, warehousing, tactical textiles, prototype manufacturing, 3D printing and new-product introduction. By bringing these capabilities inside the Ondas organization, the company can potentially reduce its reliance on external manufacturing partners while gaining greater control over production schedules, quality, costs and supply-chain availability.
The acquisition also fits directly into Ondas’ strategy of building a stronger sovereign defense footprint in Israel. Recently, it secured a multi-million-dollar tender from the Israeli Ministry of Defense to develop and produce next-generation tactical attack drones, further driving its expansion into advanced autonomous defense systems. Ondas expects Aran Defense to strengthen in-house engineering, prototyping and scalable production, helping convert rising demand into repeatable output with better control over quality, costs, supply and delivery. Aran’s local defense relationships should also open new programs, while Ondas’ global network can support Aran’s expansion into allied markets.
The acquisition also appears relatively modest compared with Aran Defense's expected revenue. Aran Defense generated about $12 million in revenue in 2024 and $17 million in 2025. It expects nearly $26 million of revenue in 2026, along with positive adjusted EBITDA. At roughly $33 million, the purchase price represents about 1.3 times expected 2026 revenue. If Aran Defense achieves its expected 2026 revenue and remains profitable, the acquisition could provide Ondas with an immediately operating industrial platform.
Are ONDS’ Competitors Also Expanding Through M&A?
Draganfly DPRO completed the acquisition of Skip Dynamix last month, strengthening its defense drone portfolio and expanding its presence in the low-cost autonomous aerial systems market. The deal adds fixed-wing drone technology and enhances Draganfly’s AI, autonomy and military systems capabilities, while improving its positioning in U.S., NATO and Indo-Pacific defense programs. The acquisition adds the Orca fixed-wing drone to Draganfly’s portfolio, expanding its capabilities in long-range autonomous systems. It also broadens the company’s reach across defense and government markets, creates revenue growth opportunities and retains key fixed-wing drone expertise through the continued involvement of Skip Dynamix’s founders.
In May, Unusual Machines UMAC agreed to acquire Upgrade Energy for approximately $52 million, adding battery and power system expertise to its drone components business. The deal expands the company’s product portfolio, strengthens domestic manufacturing capabilities and supports future production growth through additional U.S. facilities. In 2025, UMAC bought Rotor Lab, adding high-performance drone motor and propulsion technologies to its portfolio. The deal strengthens its commercial and defense offerings, supports U.S. manufacturing expansion and enhances motor design and engineering capabilities. It also agreed to acquire Aloft Technologies for $14.5 million, adding leading drone fleet and airspace management capabilities to its portfolio.
ONDS’ Price Performance, Valuation and Estimates
Shares of ONDS have jumped 134.2% in the past year compared with the Zacks Wireless-National industry’s rise of 80%
Image Source: Zacks Investment Research
In terms of the forward 12-month Price/Sales ratio, ONDS is trading at 5.85, lower than the industry’s multiple of 8.04.
Image Source: Zacks Investment Research
For ONDS, earnings estimates for the current year have been revised significantly downward in the past 60 days.
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