Ondas Holdings NASDAQ:ONDS, a developer of autonomous drones, counter-drone technology, and wireless communications systems for government and industrial customers, has agreed to acquire DZYNE Technologies, an autonomous aircraft maker, in an $875.8 million cash-and-stock transaction. The deal is expected to position Ondas as a broader autonomous defense technology platform, adding DZYNE's unmanned aircraft used for military surveillance and reconnaissance, along with smaller autonomous drones and counter-drone systems.
DZYNE, which is backed by private equity firm Highlander Partners, is expected to bring meaningful revenue scale to Ondas. Under the transaction, DZYNE investors will receive $200 million in cash and about $675 million in stock, with more than half of those shares locked up for six months. Ondas said DZYNE is expected to generate $191 million in revenue this year and $300 million in 2027, giving investors a clearer view of the growth profile Ondas may be trying to build through acquisitions.
The acquisition comes as defense technology continues to attract stronger investor interest. U.S. defense-tech startups raised $19.2 billion in the first half of this year, already above the $16.6 billion raised in all of 2025, according to PitchBook data cited in the source article. With DZYNE and the Ominisys acquisition completed in May, Ondas is now targeting $525 million in revenue this year, up from its earlier target of $390 million. Ondas shares have declined 24% this year, giving the company a market value of $3.9 billion, after the stock jumped more than 280% in 2025.