Ondas Holdings Inc (NASDAQ:ONDS) announced a definitive agreement to acquire Aran Defense Ltd., the defense-focused arm of Aran Ltd. (TASE:ARAN), in a transaction valued at roughly $33 million. The news preceded a 4.9% decline in Ondas shares in premarket trading on Tuesday.
The purchase consideration is structured as approximately $33 million payable in cash or in Ondas common stock, subject to working capital and other customary adjustments. Ondas said the acquisition will extend its manufacturing and industrialization capabilities in Israel, supporting engineering, integration and production for its autonomous defense divisions.
The price equates to about 1.3 times Aran Defense’s expected revenue of $26 million for 2026. Aran Defense reported roughly $17 million in revenue in 2025, up from $12 million in 2024, and the business had positive Adjusted EBITDA.
Ondas indicated it expects the transaction to close in the third quarter of 2026.
Operations and capabilities
Aran Defense operates approximately 4,400 square meters of engineering and manufacturing facilities in Israel. The sites include capabilities such as CNC turning and milling, electromechanical assembly and integration halls, cabling, classified production areas, quality assurance and quality control functions, procurement and warehousing, tactical textiles, prototype manufacturing, and 3D printing.
The operation serves governmental customers in Israel as well as leading international defense companies. Ondas said the acquisition will deepen its investment in Israel’s sovereign defense-industrial base and expand domestic engineering and production capacity for autonomous defense systems.
Strategy and executive comment
Ondas framed the deal as a step to increase localized manufacturing capacity where demand is rising. "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.
By adding Aran Defense’s engineering, integration and production resources, Ondas aims to support increased demand across its autonomous defense businesses while reinforcing on-the-ground capabilities in Israel.
Market reaction and context
Following the announcement, Ondas shares moved lower in premarket trading, reflecting investor reaction to the acquisition and its financing mix. The company noted standard working capital and other adjustments will apply to the cash-or-stock consideration.
The transaction highlights a corporate push to expand manufacturing and industrialization capacity in Israel for defense-related systems, while positioning Ondas to serve both domestic governmental customers and international defense contractors.
Closing timeline
Ondas projects closing the acquisition in the third quarter of 2026, subject to the customary closing conditions and adjustments referenced in the definitive agreement.