Ondas Acquires Three Israeli Tech Firms for $56 Million

American group Ondas is continuing its acquisition spree in the defense industry by purchasing three Israeli technology companies: Insignito, Ottopia Defense, and Caribou Labs, for a total of $56 million. The deals include potential additional contingent consideration of up to $32 million, payable by 2028, which could bring the total value to $88 million. Ondas expects the initial $56 million payment, made in cash or Ondas stock, to represent a multiple of less than 3 times the projected revenues of the three companies in 2027, estimating their combined revenue at nearly $19 million that year. The acquisitions will bring 37 employees to Ondas, who will also receive approximately 2.98 million restricted shares and options for an additional 80,000 shares.

Ondas aims to expand its technology portfolio in autonomous battlefield systems, covering drone detection, remote control and communication for unmanned vehicles, and navigation and communication in GPS-denied environments due to electronic jamming. This move aligns with Ondas's "System of Systems" strategy, which seeks to integrate platforms, sensors, communication systems, software, and control capabilities under one umbrella.

Insignito, founded in 2022 by former Israeli Air Force personnel, specializes in passive acoustic drone detection using its DUMBO system, which operates without radio signal transmission by analyzing ambient sounds and employing AI. Ottopia Defense provides software and communication infrastructure for seamless data transfer and remote control of unmanned vehicles, even in disrupted communication environments, enabling a single operator to manage multiple vehicles. Caribou Labs focuses on Deep Tech, specializing in RF, communication, positioning, and timing technologies for electronic warfare, enabling platforms to maintain navigation and communication without GPS, a capability already in use in active combat zones.

These acquisitions are part of Ondas's accelerated strategy to transform from a collection of companies into a group capable of offering comprehensive autonomous systems to its defense clients. Ondas Chairman and CEO Eric Brock stated that the acquisitions are intended to consolidate critical technologies for more resilient and effective autonomous systems in hostile environments, while also expanding revenue streams and enhancing the company's ability to compete for large, long-term defense programs. Ondas recently appointed former Mossad chief Yossi Cohen as its Chairman and Global President and has recruited other senior defense industry executives. The company is also reportedly in advanced negotiations to acquire Nirosta Tzafon for approximately $250 million, which would give Ondas a manufacturing footprint in the defense sector. These moves follow a nearly $1 billion fundraising round by Ondas late last year.