Ondas Acquires Israeli Defense Manufacturer Aran Defense for $33 Million

Ondas Inc. announced Tuesday that it has reached a definitive agreement to acquire Aran Defense Ltd., the defense division of Israeli company Aran Ltd.

The deal will expand Ondas' engineering and manufacturing capacity in Israel while aiming to meet growing demand for the company's autonomous defense systems.

Aran Defense Brings Manufacturing Scale

Aran Defense operates approximately 4,400 square meters of engineering and manufacturing facilities in Israel. Its capabilities include CNC machining, electromechanical assembly, wiring, prototyping, and 3D printing.

The business serves Israeli government customers and international defense companies. Ondas expects the acquisition to help it increase production volumes, shorten development cycles, and improve control over costs, quality, and supply chain.

"As demand for our defense business continues to grow, expanding localized manufacturing capacity is becoming increasingly important to our execution capabilities," said Eric Brock, Chairman and CEO of Ondas.

Ondas said the added capacity can support its counter-drone, intelligence surveillance reconnaissance, loitering munitions, autonomous aerial, and ground robotic systems.

Ondas Values Deal at Approximately $33 Million

Aran Defense generated approximately $17 million in revenue in 2025, up from approximately $12 million in 2024. The business is expected to generate approximately $26 million in revenue in 2026 and achieve positive adjusted EBITDA.

Ondas will acquire Aran Defense for approximately $33 million in cash or Ondas common stock, subject to customary adjustments. The price represents approximately 1.3 times expected 2026 revenue.

The company expects to complete the acquisition in the third quarter of 2026.

As of June 30, 2026, Ondas had $1.4 billion in total liquidity, including cash, cash equivalents, restricted cash, and short-term investments.

Stock Performance and Technical Analysis

Ondas shares rose slightly Tuesday, outperforming a sharp decline in the broader technology sector. The Nasdaq fell 1.42%, and the S&P 500 declined 0.50%. The technology sector dropped 2.47%.

Ondas has gained 125% over the past 12 months. Additionally, the stock remains above its 20-day moving average of $8.52 and its 50-day average of $8.30.

However, the stock remains below its 100-day average of $9.20 and its 200-day average of $9.39. The stock's relative strength index is 54.82, indicating neutral momentum. The $9 level may provide near-term support. Meanwhile, $10 remains a key resistance area.

Analysts Remain Bullish

The stock holds a consensus Buy rating with an average price target of $18.15.

On Monday, Ladenburg Thalmann raised its price target to $22.75, maintaining a Buy rating. Oppenheimer raised its price target to $18 on Friday while maintaining an Outperform rating. Needham maintained a Buy rating and a $19 price target on the same day.

ONDS Price Action: As of Tuesday's publication time, Ondas shares were up 0.11% at $9.01.