Ondas Holdings Inc. (NASDAQ: ONDS) shares declined 4.9% in premarket trading on Tuesday after the company agreed to acquire Aran Defense Ltd. for approximately $33 million.
The transaction, structured as cash or Ondas common stock with customary adjustments, is expected to close during the third quarter of 2026. Aran Defense, the defense-focused division of Aran Ltd. (TASE: ARAN), generated $17 million in revenue in 2025, an increase from $12 million in 2024, while maintaining positive Adjusted EBITDA.
The deal values Aran Defense at roughly 1.3 times its projected 2026 revenue of $26 million. The acquired company operates 4,400 square meters of engineering and manufacturing facilities in Israel, supporting capabilities such as CNC machining, electromechanical assembly, classified production, and 3D printing. Its customer base includes governmental entities in Israel and leading international defense contractors.
Eric Brock, Chairman and CEO of Ondas, stated, "As demand across our defense businesses continues to grow, expanding localized manufacturing capacity is becoming increasingly important to our ability to execute."
