Ondas Holdings Inc. has entered into a definitive agreement to acquire Aran Defense Ltd., the defense-focused division of Aran Ltd. for approximately $33 million in cash or Ondas common stock.
The deal, announced on August 18, 2026, is designed to significantly expand Ondas local manufacturing and industrialization capacity in Israel to meet growing demand for autonomous defense systems.
The acquisition is strategically important because autonomous defense platforms including counter-UAS, ISR, loitering munition, autonomous aerial and ground robotic systems require localized engineering and production resources with 4,400 sqm facilities to shorten development to production cycles and control quality, cost and supply-chain.
By combining Ondas autonomous systems and next-generation defense technologies with Aran Defense multidisciplinary engineering and in-house production infrastructure including CNC, electromechanical assembly, classified production, QA/QC, tactical textiles, 3D printing and NPI, the companies aim to build Ondas into vertically integrated defense technology company.
Key Details of the Acquisition
| Detail | Information |
| Acquirer | Ondas Holdings Inc. (Nasdaq: ONDS) |
| Target | Aran Defense Ltd. (defense division of Aran Ltd., TASE: ARAN) |
| Acquirer Country | United States (Waltham, Mass and Sunnyvale, Calif, HQ Boston) |
| Target Country | Israel (Caesarea, Israel HQ for parent Aran R&D 1982 Ltd.) |
| Acquirer Industry | Autonomous Systems, Defense and Security Technologies, Robotics, Counter-UAS, Drones |
| Target Industry | Defense Engineering and Manufacturing, Sovereign Defense Industrial Base, Tactical Textiles, Electromechanical Assembly |
| Deal Type | Acquisition – Division Carve-Out |
| Deal Value | ~$33 Million (NIS 100 Million / $33.9M per Calcalistech), subject to working capital adjustments |
| Payment | Cash or Ondas common stock, at Ondas election |
| Announcement Date | August 18, 2026 |
| Expected Closing | Q3 2026 (third quarter 2026) |
| Acquirer Founded | 2014, Boston |
| Acquirer Stock | NASDAQ: ONDS |
| Target Founded | 1982 (parent Aran Research & Development (1982) Ltd.), defense division |
| Other Ondas Deals | Sep 2026 acquired three defense tech businesses Insignito, Ottopia Defense, Caribou Labs for $56M + up to $32M earn-outs through 2028, Nov 2025 Sentrycs (Israeli cyber-over-RF C-UAS), GATE Technologies and Bron Technologies |
Deal Structure
The transaction is structured as acquisition of all shares of Aran Defense Ltd., the subsidiary that consolidates defense development and manufacturing operations of Aran Ltd. (TASE: ARAN), for NIS 100M ($33-33.9M) in cash or Ondas common stock at Ondas election, subject to working capital and other customary adjustments.
Ondas Holdings Company Introduction
Ondas Holdings Inc. is a U.S.-based leading provider of autonomous systems and next-generation defense and security technologies, headquartered Boston, Waltham Mass, Sunnyvale Calif, founded 2014, CEO Eric Ashley Brock, Chairman and Global President David Dadi Barnea (former head of Mossad appointed ~2 weeks before Aran deal).
Operating units: Ondas Network – Mission Critical Wireless IoT Networks, and American Robotics – Beyond Visual Line of Sight (BVLOS) Robotic Drones.
Solutions: autonomous drone systems, counter-UAS technologies including Dronebuster REACH non-kinetic, robotic ground systems, advanced unmanned aircraft and propulsion solutions including GATE Technologies and Bron Technologies, demining and engineering systems, integrated sensing and communications, Cyberhawk infrastructure inspection, Sentrycs cyber-over-RF C-UAS. Deployed globally by government, defense, commercial customers.
Aran Defense Company Introduction
Aran Defense Ltd. is a defense-focused division of Aran Ltd. (TASE: ARAN), Aran Research & Development (1982) Ltd., an established Israeli engineering and manufacturing company founded 1982, headquartered Caesarea, Israel, traded Tel Aviv Stock Exchange. Defense division serves governmental customers in Israel and leading international defense companies. Operations: 4,400 sqm technical facilities across Israel including 2,800 sqm plant + two supporting sites 1,600 sqm, multidisciplinary engineering,
in-house production: CNC turning and milling, electromechanical assembly and integration halls, cabling, classified production space, QA/QC, procurement, warehousing, tactical textiles, prototype manufacturing, 3D printing, NPI capabilities. Revenue $12M 2024, $17M 2025, expected $26M 2026 with positive Adjusted EBITDA. Parent Aran R&D revenue 263.4M ILS 2025 +20.81% growth, 139.57M ILS H1 2026 +37.96% growth, shares +118% past 12 months, $46.1M revenue per ZoomInfo.
Financials Overview
Ondas Holdings is in high-growth phase with Q2 2026 record revenue $83.8M versus $6.3M same quarter last year, raised 2026 guidance to $525-550M, pro forma backlog $757M, representing 1.41x guidance midpoint, market cap $4.97B at 9.25x 2026 guidance midpoint, EV $3.63B at 6.75x.
Trading at premium multiple due to autonomous defense demand including tactical attack drones for Israel, counter-UAS, ISR.
Aran Defense is smaller but profitable working shop: $12M 2024 to $17M 2025 (+41% growth) to $26M expected 2026, positive Adjusted EBITDA, not pre-revenue gamble.
Acquisition price ~$33M represents 1.3x expected 2026 sales, vs Ondas own 9.6x, creating sevenfold valuation disparity and accretive manufacturing control.
Parent Aran R&D (1982) Ltd. had revenue 263.4M ILS 2025, 139.57M ILS H1 2026 +37.96% growth, public company TASE: ARAN.
Why Is Ondas Acquiring Aran Defense?
| Ondas Already Has | Aran Defense Brings |
| Autonomous systems portfolio, counter-UAS, ISR, loitering munition, drones | Established 4,400 sqm production platform in Israel |
| Growing demand, expanding order activity and backlog $757M | Multidisciplinary defense engineering + manufacturing operations |
| International presence and customer relationships | Relationships with Israel defense establishment + leading defense companies, governmental customers |
| Need to industrialize faster | CNC, classified production, tactical textiles, 3D printing, NPI – shorten transition from development to production |
Outcome
This $33M deal at 1.3x expected 2026 revenue represents a low-cost, high-synergy tuck-in that is materially accretive to Ondas vertical integration thesis, especially given Ondas own trading at 9.25x sales and 6.75x EV/sales, creating a sevenfold valuation arbitrage.
Strategically, Ondas pivots from asset-light autonomous tech provider into a sovereign Israeli manufacturing base with 4,400 sqm classified facilities, providing control over production, quality, cost, and supply-chain for tactical attack drones for Israel, counter-UAS (Dronebuster REACH, Sentrycs), ISR and loitering munition programs.
Source: Ondas press
