ONDS · Ondas Holdings Inc.

The acquisition of DZYNE Technologies marks a transformative step for Ondas, creating one of the broadest independent autonomous defense platforms. DZYNE brings three strategic franchises: long-endurance ISR (ULTRA, LEAP), counter-UAS (IonStrike, Dronebuster), and autonomous effects (Blitz, Grasshopper), addressing the fastest-growing defense modernization priorities. The transaction is valued at $875 million, financed with $200 million cash and approximately 85 million Ondas shares. Over 50% of the stock consideration is subject to a six-month lock-up, signaling long-term alignment. DZYNE is expected to generate $191 million in revenue for 2026, growing to over $300 million in 2027, with EBITDA positive this year and margins expanding to mid-teens in 2027 and mid-20% by 2028. Ondas has raised its full-year 2026 revenue target to at least $525 million, incorporating DZYNE and the Omnisys acquisition. The formation of Ondas Sentinel as a dedicated U.S. defense division, integrating DZYNE and World View, provides a scalable operating platform with 330,000 sq ft of manufacturing capacity, over 140 engineers, and 8 U.S. facilities. The combined entity is well-positioned to capture demand from the U.S. Department of War and allied forces for affordable autonomous mass, persistent ISR, and layered counter-drone solutions. Risks include integration challenges, execution on the aggressive revenue ramp, and dependence on U.S. defense budgets.