The sixth acquisition: Ondas buys Aran's defense operations at a valuation of 100 million shekels

The American defense technology company Ondas continues to expand its operations in Israel, and for the first time is acquiring the business of a company traded on the local stock exchange. The company signed an agreement to acquire the development and manufacturing operations of Aran Research and Development, through the purchase of all shares of Aran Defense, at a valuation of 100 million shekels.

Aran, which is traded on the Tel Aviv Stock Exchange with a market cap of about 200 million shekels, is effectively selling an operation worth half of its market value. Aran's stock has risen by 118% in the last 12 months, and yesterday jumped by 4.5%.

Aran accompanies companies in product development from the idea and specification stage, through design, mechanical and electronic planning, software, prototype production and 3D printing, to serial production. It operates in the fields of defense, medical equipment, water, and industrial and consumer products. The sold operation recorded revenues of about 54 million shekels in 2025. Aran estimates that the completion of the deal will yield a pre-tax profit of about 75 million shekels.

After the sale, Aran will retain, among other things, the equipment and representation operations for the plastics and polymers industry, environmental quality and waste separation, 3D printing, engineering services, software and computing activity, and medical ventures.

The deal is not a cash transaction. The consideration will be paid through Ondas shares, the number of which will be determined according to the average price of Ondas shares in the five trading days before their allocation. 10% of the proceeds will be deposited in escrow for 18 months to secure Aran's obligations. In recent years, Ondas has become a defense giant with a market cap of 5.2 billion dollars. Ondas stock has risen by about 145% in the last 12 months, from about 4 dollars to 9.8 dollars following reports last week.

Aran and Ondas have been conducting negotiations since at least March. The deal is subject to conditions precedent, including the approval of the Israel Competition Authority. As part of the agreement, Aran committed not to compete with the sold operation in the field of defense products worldwide for four years.

Ondas has already carried out several deals in the Israeli defense sector:

1. 2023: Acquired Airobotics (autonomous drone systems).

2. August 2025: Acquired Apeiro Motion (autonomous ground systems), 51% of SPO (optical components), and 4M (underground robotics).

3. November 2025: Acquired Sentrycs (drone detection and neutralization).