Ondas Acquires Israeli Defense Firm Aran's Security Division for NIS 100 Million
American defense technology company Ondas is expanding its presence in Israel by acquiring the development and manufacturing operations of Aran Research and Development. The deal involves purchasing all shares of Aran Defense, the subsidiary consolidating this activity, at a valuation of 100 million shekels. Aran, publicly traded on the Tel Aviv Stock Exchange with a market cap of approximately 200 million shekels, is effectively selling half of its market value in this transaction. Aran's stock surged 118% over the past year and jumped 4.5% following the announcement.
Aran supports companies through product development stages including concept, mechanical and electronic design, software, prototyping, 3D printing, and serial production. Its operations span defense, medical devices, water, and industrial and consumer products. The sold division generated revenues of about 54 million shekels in 2025, with Aran projecting a pre-tax profit of roughly 75 million shekels from the sale. Post-sale, Aran will retain its plastics and polymers equipment and representation business, environmental and waste separation activities, 3D printing, engineering services, software and computing, and medical ventures.
The transaction is a stock deal, with Ondas shares issued based on the average price over five trading days prior to allocation. Ten percent of the proceeds will be held in escrow for 18 months to guarantee Aran's commitments. The deal is subject to conditions including approval from the Israeli Competition Authority and other regulatory bodies. Aran has agreed not to compete globally in defense product development and manufacturing for four years after closing.
Ondas has rapidly grown into a defense giant valued at $5.2 billion, with its stock rising about 145% in the past year. Since March, Ondas and Aran have been negotiating this acquisition, with Aran delaying disclosure to avoid jeopardizing terms. Ondas has made several Israeli defense acquisitions recently, including Aerobotics, Apeiro Motion, SPO, 4M, and Sentrycs, strengthening its foothold in autonomous drones, robotics, and optical components.
