Ondas buys DZYNE for $875.8M to build autonomous defense platform

Ondas Inc. acquired DZYNE Technologies for $875.8 million in a cash-and-stock deal, transforming the drone maker into a full-service autonomous defense platform as global militaries accelerate spending on unmanned systems.

"The character of warfare is changing rapidly, and military advantage increasingly belongs to organizations capable of deploying autonomous systems at scale," said Eric Brock, chairman and chief executive officer of Ondas.

DZYNE shareholders received $200 million in cash and about 85 million Ondas shares valued at roughly $675 million. More than half the equity consideration — 45 million shares — is subject to a six-month lock-up. Highlander Partners, DZYNE's majority owner, will hold about 13.8% of Ondas' outstanding shares.

The acquisition positions Ondas to compete for larger defense programs at a time when the U.S. Department of War is prioritizing affordable mass and autonomous effects. DZYNE brings a $1.5 billion three-year pipeline and $111 million in backlog as of June 30.

DZYNE's Technology Portfolio

DZYNE adds three strategic franchises to Ondas: long-endurance intelligence, surveillance and reconnaissance aircraft, counter-drone systems and autonomous effects. Its ULTRA platform, a long-endurance autonomous aircraft with tens of thousands of operational flight hours, delivers multi-day ISR across large areas at lower cost than traditional aircraft. The IonStrike kinetic interceptor targets the Shahed-136 class of one-way attack drones, completing Ondas' counter-UAS portfolio alongside the Dronebuster handheld system and Iron Drone's autonomous net interception.

The combined ISR portfolio now spans three layers: World View's stratospheric Stratollites for wide-area surveillance, DZYNE's ULTRA and LEAP platforms for theater-level missions, and Ondas' Optimus drone for tactical-edge operations. Ondas is also developing SkyWeaver, an AI-enabled mission operating system in partnership with Palantir Technologies, built on Palantir Foundry and AIP.

Financial Outlook and New Division

DZYNE is expected to generate $191 million in revenue for the full year 2026, rising to more than $300 million in 2027, with a compound annual growth rate exceeding 80% from 2025 through 2028. The company is EBITDA positive with margins targeted in the mid-teens in 2027 and the mid-20% range by 2028. DZYNE's capabilities have been supported by more than $500 million of cumulative research and development investment.

Ondas raised its 2026 revenue target to at least $525 million, up from a prior forecast of $390 million, incorporating both DZYNE and the Omnisys acquisition that closed in May. The new outlook does not include contributions from Cyberhawk, an acquisition expected to close in the third quarter.

Ondas formed a new operating division, Ondas Sentinel, to unify its U.S. defense portfolio. Ryan Hartman, chief executive officer of World View, will serve as CEO of Ondas Sentinel. Matt McCue, co-founder and CEO of DZYNE, becomes chief technology officer. Citizens Capital Markets & Advisory advised Ondas on the transaction, while Baird advised DZYNE. Akerman LLP served as legal counsel to Ondas, and Baker McKenzie advised Highlander Partners and DZYNE.

The deal underscores a broader shift in defense spending toward autonomous systems. The last time a comparable consolidation occurred in the defense tech space was in 2024, when Anduril and Palmer Luckey's defense startup raised significant capital amid accelerating drone adoption on battlefields in Ukraine and the Middle East. Ondas shares rose 0.88% to $7.475 on the announcement.

This article is for informational purposes only and does not constitute investment advice.