Key Takeaways
- Ondas is acquiring Aran Research & Development for NIS 100 million ($33.9 million), marking its first purchase of a publicly traded Israeli company.
- The acquisition will enhance Ondas’ defense technology operations, while Aran retains its other business activities.
- Aran’s shares have surged 118% in the past year, despite selling operations at about half its market value.
Ondas Expands Operations in Israel with Strategic Acquisition
Ondas, a U.S. defense technology company, is expanding its footprint in Israel by acquiring Aran Research & Development. The deal involves purchasing Aran Defense, the subsidiary responsible for development and manufacturing, for NIS 100 million ($33.9 million). This acquisition is notable as it marks the first time Ondas has bought a company listed on the Tel Aviv Stock Exchange.
Aran Research has a market capitalization of approximately NIS 200 million ($67.8 million), indicating that Ondas is acquiring the operations at about half the company’s market value. In the past year, Aran’s shares have increased by 118%, reflecting strong investor confidence.
Aran provides comprehensive product development services across various sectors, including defense, medical equipment, water, industrial, and consumer goods. The operations involved in this acquisition generated roughly NIS 54 million ($18.3 million) in revenue for the 2025 fiscal year. The transaction is expected to result in a pre-tax profit of approximately NIS 75 million ($25.4 million) for Ondas.
Despite the significant sale, Aran will retain several business divisions, including equipment for the plastics and polymers industry, environmental quality operations, engineering services, and medical ventures. This ensures that Aran maintains a diversified service portfolio.
The deal will not be executed in cash; instead, consideration will be paid in Ondas stock, with the final number of shares issued determined by the average price over five trading days ahead of allocation. Notably, 10% of the shares will be held in escrow for 18 months to fulfill Aran’s commitments within the agreement.
Ondas has recently gained recognition as a key player in the defense technology sector, with its market value reaching approximately $5.2 billion. The company’s shares have significantly appreciated, recording an increase of around 145% over the last year, bolstered by strong financial performance reports published recently.
Discussions regarding the Aran acquisition commenced in March. Initially, Aran withheld details about the negotiations, fearing that disclosure might jeopardize the agreement’s terms. The transaction is contingent on approvals from the Israel Competition Authority and other regulatory entities.
As a condition of the sale, Aran has agreed not to compete in the defense sector for four years regarding the activities being acquired by Ondas. This acquisition follows a series of strategic deals by Ondas in Israel, including the acquisition of other tech and defense companies aimed at bolstering its operational capabilities in the region.
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