Shares of Ondas Inc. ONDS jumped 5.5% yesterday after the company announced the acquisition of DZYNE Technologies, a deal valued at $875.8 million, consisting of $200 million in cash and roughly $675 million in Ondas stock, with more than half of the equity consideration subject to a six-month lock-up period. The transaction positions ONDS as a comprehensive autonomous defense platform capable of serving governments, military organizations, homeland security agencies and critical infrastructure operators with integrated, AI-driven solutions.
Before the acquisition, Ondas had already developed capabilities in autonomous drone operations, persistent sensing and communications through its partnerships with World View and Optimus. DZYNE adds long-endurance ISR, Counter-UAS and autonomous strike and logistics platforms, creating an integrated system-of-systems rather than a portfolio of standalone products. To support its expanded vision, Ondas has launched OndasSentinel, combining World View and DZYNE into a dedicated division to streamline R&D, manufacturing, software development and customer engagement while pursuing larger defense contracts.
Investors cheered the acquisition and the dramatic improvement in Ondas' financial outlook. Following the transaction, management raised its 2026 revenue guidance to at least $525 million from the previous forecast of $390 million. The increase reflects contributions from recently acquired businesses, including DZYNE and Omnisys, while DZYNE alone is expected to generate approximately $191 million in revenue during 2026 and more than $300 million in 2027. DZYNE reportedly brings a $1.5 billion contract pipeline, approximately $111 million in backlog and expectations for positive EBITDA beginning in 2026.
Another attractive aspect of the deal is how well DZYNE fits into Ondas' broader acquisition strategy. Earlier this year, Ondas completed acquisitions, including Cyberhawk and Omnisys, strengthening its exposure to military programs and AI-powered battlefield software. The upgraded revenue outlook, sizable contract pipeline and stronger competitive positioning are likely to drive future stock performance.
Are Ondas’ Peers Also Betting on Acquisitions?
Draganfly DPRO completed the acquisition of Skip Dynamix last month, strengthening its defense drone portfolio and expanding its presence in the low-cost autonomous aerial systems market. The deal adds fixed-wing drone technology and enhances Draganfly’s AI, autonomy and military systems capabilities, while improving its positioning in U.S., NATO and Indo-Pacific defense programs. The acquisition adds the Orca fixed-wing drone to Draganfly’s portfolio, expanding its capabilities in long-range autonomous systems. It also broadens the company’s reach across defense and government markets, creates revenue growth opportunities and retains key fixed-wing drone expertise through the continued involvement of Skip Dynamix’s founders.
Last month, Unusual Machines UMAC agreed to acquire Upgrade Energy for approximately $52 million, adding battery and power system expertise to its drone components business. The deal expands the company’s product portfolio, strengthens domestic manufacturing capabilities and supports future production growth through additional U.S. facilities. In 2025, UMAC bought Rotor Lab, adding high-performance drone motor and propulsion technologies to its portfolio. The deal strengthens its commercial and defense offerings, supports U.S. manufacturing expansion and enhances motor design and engineering capabilities. It also agreed to acquire Aloft Technologies for $14.5 million, adding leading drone fleet and airspace management capabilities to its portfolio.
ONDS’ Price Performance, Valuation and Estimates
Shares of ONDS have declined 24.1% in the past month against the Zacks Wireless-National industry’s jump of 144.7%
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In terms of the forward 12-month Price/Sales ratio, ONDS is trading at 7.29, lower than the industry’s multiple of 9.77.
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For ONDS, earnings estimates for the current year have remained unchanged in the past 30 days.
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ONDS currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Ondas Holdings Inc. (ONDS): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).