Why Ondas Stock Rocketed More Than 25% Higher on Tuesday

Drone, robot, and telecom equipment specialist Ondas (NASDAQ: ONDS) was quite the standout on the stock market on the second trading day of the week. Its share price blasted skyward by more than 25% thanks to news of a fresh acquisition.

Flying high with the new asset

Before market open, Ondas announced, no doubt with great satisfaction, that it wrapped up its purchase of Israeli counter-unmanned aerial systems (CUAS) company sentrycs. It didn't take long to close the sale; it was originally announced two weeks ago.

Image source: Getty Images.

On paper, anyway, the deal is very synergistic. The technology sentrycs has developed tags, tracks, and ultimately gains control of unauthorized drones. It does so without disrupting nearby communications networks, Ondas said.

Ondas will integrate these capabilities into its system-of-systems platform. In its press release on the closing of the deal, the company wrote that this integration "positions Ondas to address the accelerating global demand for layered CUAS infrastructure, particularly in urban population centers, airports, borders, and strategic national facilities, where safe, low-collateral solutions are required."

Potential to lift the business

While the successful integration of a new asset into an existing company is never guaranteed, this one looks very promising.

Recent conflicts, most notably the Ukraine war, have illustrated the great value drones can have on the battlefield -- and, conversely, the important of developing strong CUAS capabilities for the defense sector. This acquisition definitely feels like a powerful business-enhancing move by Ondas.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.