Ondas Expands Defense Footprint With $390M GATE Technologies Deal

• Ondas acquired GATE Technologies and Bron Technologies for up to $390 million.
• Ondas expects the GATE business to generate $65 million in revenue in 2026, rising to $180 million by 2028.
• The company plans to expand U.S. engineering and production capabilities, with U.S.produced finished products and integrated systems expected in the first half of 2027.

Ondas Inc. (ONDS) announced Monday that it is acquiring Israeli-based defense technology company GATE Technologies and its European affiliate, Bron Technologies.

Ondas said it will pay $205 million, the majority of which is payable in cash, plus a working capital adjustment, and $185 million of performance-based earn-out consideration.

That puts the maximum stated consideration at $390 million, excluding the working capital adjustment.

The $205 million figure consists of $105 million in cash and $100 million in Ondas common stock. The company expects to issue approximately $22.5 million of the stock consideration within nine months of closing, subject to certain conditions.

ONDS shares were up more than 3% at the time of writing.

GATE Adds Electronic Fuzing Technology To ONDS’ Defense Portfolio

GATE, founded in 2006, develops Electronic Safe & Arm Devices (ESADs) and electronic fuzing systems used in precision weapons.

According to Ondas, GATE's technology has been integrated into dozens of weapon systems globally, and its products are used in applications including rockets, missiles, UAVs, loitering munitions, gravity-release weapons, and other high-G platforms.

Ondas CEO Eric Brock said the acquisition comes as defense customers work to rebuild munitions inventories and the industry shifts toward greater use of low-cost autonomous systems. He added that the market is also moving from traditional mechanical fuzes to electronic safe-and-arm devices, which are increasingly important for smaller, smarter and software-defined weapons.

Meanwhile, Oshri Lugassy, Co-CEO of Ondas, said GATE has built a strong position in the electronic safe-and-arm and fuzing market through decades of qualification and integration across a wide range of weapon systems. He said the technology is deeply integrated into customer platforms, creating barriers to entry and positioning GATE to benefit as global production of precision-strike systems expands.

Deal Could Add Meaningful Revenue Through 2028

Ondas expects the acquired GATE business to generate approximately $65 million in revenue in full-year 2026, increasing to $180 million in 2028.

The company also expects the acquired business to contribute more than $130 million in aggregate adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) through 2028.

It said the earnout of up to $185 million is tied to financial performance through 2028 and can be paid in either cash or Ondas stock at the company's election.

The acquisition also gives Ondas a manufacturing footprint outside Israel through Bron Technologies, which operates production capabilities in Poland.

Ondas said approximately 80% of GATE's revenue is currently generated outside the Middle East. The company is also establishing U.S. engineering, integration, qualification and production capabilities. 

Ondas expects U.S. produced finished products and integrated systems to be available in the first half of 2027.

ONDS’ Q2 Highlights

In August, Ondas reported $83.8 million in second-quarter 2026 revenue, up from $50.1 million in the first quarter and $6.3 million a year earlier. The company also raised its full-year 2026 revenue target to $525 million to $550 million.

Ondas said it had approximately $1.4 billion in cash, cash equivalents, restricted cash and short-term investments as of June 30, although it also disclosed that roughly $325 million of cash was used during the third quarter to close its DZYNE and Cyberhawk transactions.

That makes the GATE acquisition another significant deal following Ondas' recent push into defense and autonomous systems.

Retail Take on ONDS

On Stocktwits, retail sentiment toward ONDS remained in bearish territory. One bullish Stocktwits user said they had bought 20,000 ONDS shares and were “all in.”
Another user said they believe it is “just a matter of time,” encouraging investors to buy and hold ONDS shares for a potential move higher.

Shares of ONDS have declined 11% year-to-date.

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