Ondas Shares Drop After Agreeing $33 Million Aran Defense Acquisition

Ondas Holdings Inc (NASDAQ:ONDS) shares fell 4.9% in premarket trading on Tuesday after the company announced an agreement to acquire Aran Defense for approximately $33 million, a transaction designed to expand its manufacturing and engineering capabilities in Israel.

Ondas has entered into a definitive agreement to purchase Aran Defense Ltd., the defence-focused division of Israeli engineering and manufacturing company Aran Ltd. (TASE:ARAN).

The consideration will consist of approximately $33 million in cash or Ondas common stock, subject to customary adjustments including working capital.

Deal Values Aran Defense at Around 1.3 Times Expected Revenue

The transaction values Aran Defense at approximately 1.3 times its anticipated 2026 revenue of $26 million.

The business has recorded substantial recent growth, generating approximately $17 million in revenue during 2025, up from $12 million in 2024, while delivering positive Adjusted EBITDA.

Ondas expects the acquisition to close during the third quarter of 2026.

Acquisition Expands Israeli Manufacturing Capacity

Bringing Aran Defense into the group will provide Ondas with additional local engineering, integration, industrialisation and production resources as demand increases across its autonomous defence operations.

Aran Defense operates approximately 4,400 square metres of engineering and manufacturing facilities in Israel.

“As demand across our defense businesses continues to grow, expanding localized manufacturing capacity is becoming increasingly important to our ability to execute,” said Eric Brock, Chairman and CEO of Ondas.

The facilities offer a broad range of capabilities, including CNC turning and milling, electromechanical assembly, integration halls, cabling, classified production areas, quality assurance and quality control, procurement and warehousing.

Aran Defense also provides tactical textile manufacturing, prototype production and 3D printing capabilities.

Ondas Deepens Investment in Israel Defence Operations

Aran Defense currently works with Israeli government customers as well as major international defence companies, giving Ondas access to an established manufacturing operation serving the sector.

Ondas said the acquisition will strengthen its commitment to Israel’s sovereign defence-industrial base while increasing domestic engineering and manufacturing capacity for its autonomous defence systems.

The deal is intended to give the company greater control over production and industrialisation as it scales its defence businesses, although investors initially responded negatively to the acquisition announcement, sending Ondas shares lower in premarket trading.

Ondas Holdings stock price