Ondas (NASDAQ:ONDS) said it has acquired DZYNE Technologies in a transaction valued at approximately $875 million, marking what Chairman and CEO Eric Brock described as a transformational step in building a scaled autonomous defense and security platform.
Speaking on an investor event call, Brock said the deal includes $200 million in cash and approximately $675 million in Ondas equity. He said the acquisition closed concurrently with signing on July 2, allowing integration to begin immediately. DZYNE shareholders, led by majority owner Highlander Partners, will become among Ondas’ largest stockholders, and Highlander has locked up more than half of the shares it received for six months, according to Brock.
DZYNE Adds Autonomous Defense Platforms
Brock said DZYNE brings operational products, a U.S.-based manufacturing base, customer relationships across defense agencies and allied militaries, and nearly 120 engineers. He said the acquisition expands Ondas’ position in persistent intelligence, aerial security, counter-drone systems, autonomous effects and AI-enabled mission intelligence.
DZYNE’s portfolio spans three core franchises, according to the company presentation:
- Long-endurance ISR: Ultra and LEAP, autonomous aircraft designed for persistent intelligence missions.
- Aerial security and counter-UAS: IonStrike, Dronebuster and Sawtooth systems.
- Autonomous effects: Blitz and Grasshopper, aimed at affordable mass and launched effects missions.
Matt McCue, founder and CEO of DZYNE and incoming chief technology officer of Ondas Sentinel, said Ultra provides more than three days of endurance at more than 25,000 feet, while LEAP provides more than a day of endurance at 17,000 feet. He said both platforms are in operational use with U.S. and allied partners.
McCue said IonStrike was developed from concept to demonstrated capability in six months to address threats such as the Shahed-136 drone. He also highlighted Dronebuster and Sawtooth as soft-kill counter-UAS systems, and said DZYNE is working on a long-range electronic attack solution and lidar detection capability.
Ondas Creates Sentinel Operating Platform
Ryan Hartman, CEO of Ondas Sentinel, said DZYNE fills a gap between Ondas’ lower-altitude unmanned systems and stratospheric assets, adding Group 4 and Group 5 long-endurance UAS capabilities. Ondas Sentinel will combine DZYNE and World View under one operating platform.
Hartman said the combined Ondas Sentinel organization includes eight U.S. facilities, more than 330,000 square feet of manufacturing capacity, 500 employees and more than 140 engineers. Brock said DZYNE contributes about 145,000 square feet of U.S.-based production capacity.
Ondas executives emphasized the role of SkyWeaver, the company’s mission autonomy layer being developed with Palantir. Hartman said SkyWeaver is intended to connect platforms across Ondas’ portfolio and enable tasking, collection and mission autonomy. In response to a question from Sydney Freedberg of Breaking Defense, Hartman said the company does not intend SkyWeaver to be a closed proprietary system, but rather a platform able to ingest data from and task third-party systems.
Hartman said SkyWeaver is a joint development program between Ondas and Palantir, with Ondas funding the development. He said Palantir is supporting go-to-market activities and helping ensure Ondas platforms can connect with systems such as Maven.
Financial Targets Raised
Brock said DZYNE is expected to generate approximately $190 million to $191 million of revenue in 2026 and more than $300 million in 2027. He also said the business is expected to deliver more than 80% compounded annual revenue growth from 2025 through 2028.
Ondas raised its 2026 revenue target to more than $525 million, up from the $390 million target it announced in May. Brock said the revised target includes contributions from DZYNE and Omnisys, whose acquisition closed in May.
DZYNE has $111 million in backlog and a customer pipeline of more than $1.5 billion, according to Brock. He said Ondas entered the second quarter with approximately $457 million in pro forma backlog and announced more than $150 million of additional orders during the quarter. He also said Ondas expects backlog to expand by $95 million upon closing the Cyberhawk acquisition, which the company expects in the third quarter.
In response to a question from Max Michaelis of Lake Street, Brock said the company is seeing gross margins of 40% to 50% for the DZYNE-related profile, while noting Ondas would provide more financial detail on its second-quarter call in August.
Management Says Acquisition Pace Will Moderate
During the call, Brock said Ondas has been executing a strategy to build a multi-domain autonomous systems company through acquisitions, partnerships and operating scale. Hartman cited recent activity including BIRD Aerosystems, Rotron Aerospace, a Palantir partnership, Mistral, World View and Omnisys.
Asked whether the acquisition spree is winding down, Brock said Ondas remains in the early stages of a major adoption cycle for unmanned and autonomous systems, but said the company expects to “moderate the acquisition pace” in the second half and focus on growth, integration and operating leverage.
Brock said Ondas’ priorities are to integrate DZYNE, support customers, scale manufacturing, expand recurring revenue and continue investing in technologies that strengthen its competitive position.
About Ondas (NASDAQ:ONDS)
Ondas Holdings, Inc (NASDAQ: ONDS) develops secure private wireless networking solutions and unmanned aircraft systems tailored to mission-critical industrial applications. Its Ondas Networks division offers the proprietary FullMAX platform, a long-range, high-bandwidth broadband network designed to support real-time data transmission, remote monitoring and IoT deployments across rail, maritime and infrastructure environments. The broadband platform integrates edge-to-cloud architecture to ensure operational resilience and regulatory compliance for transportation and utility operators.
The company’s Ondas Autonomous Systems segment builds heavy-lift cargo drones and uncrewed aircraft platforms for logistics, pipeline and infrastructure inspection, emergency response and other government and commercial use cases.
