Ondas in advanced talks to acquire Israeli defense company Nirosta Zafon for $250 million
The U.S.-listed defense group is negotiating to buy the 250-employee manufacturer that supplies major Israeli defense companies including Elbit, IAI and Rafael.
Ondas is in advanced negotiations to acquire Nirosta Zafon, a privately held Israeli defense company, in a deal expected to be valued at approximately $250 million, Calcalist has learned.
The talks are expected to conclude with a signed agreement in the coming weeks, although no deal has yet been finalized.
Nirosta Zafon is 70% owned by the Iridium Hetz Zafon Group, led by Noam Ginzburg and Uri Galai, the former CEO of Sigma Investment House. Another investor in Iridium is Udi Lavi, a former deputy director of the Mossad. The remaining 30% of Nirosta Zafon is owned by its founder, Shalom “Charlie” Levy.
Iridium acquired its controlling stake from Levy in 2022, at a company valuation of NIS 150 million ($50M). The current negotiations cover the acquisition of 100% of the company, meaning Levy could receive more than NIS 200 million ($66M) for his remaining stake.
For Iridium, the transaction would represent roughly a fivefold return on its investment over about four and a half years, during which it expanded Nirosta Zafon both organically and through acquisitions.
In 2023, Nirosta Zafon acquired a 70% stake in Blyzblau and Goldberger Mechanical Technologies, both owned by Adi and Reut Blyzblau, with Goldberger held jointly by the Blyzblau and Goldberger families. The previous shareholders retained a 30% stake in the companies and continued to manage them.
Nirosta Zafon specializes in complex projects and advanced metalworking technologies and employs approximately 250 people at the Bar-Lev Industrial Park. It operates primarily as a project-based subcontractor for major Israeli defense companies, including Elbit Systems, Israel Aerospace Industries and Rafael, as well as international defense companies.
For Ondas, the potential acquisition would add another established Israeli manufacturing and engineering operation to a defense group that has expanded at extraordinary speed through acquisitions.
The U.S.-listed company has transformed itself in a short period from a small industrial communications company into an increasingly diversified defense technology group. Ondas currently has a market value of about $4.2 billion after a rapid series of acquisitions and capital raises, including roughly $1 billion raised from an undisclosed investor. The identity of that investor remains undisclosed.
Ondas has continued its acquisition drive throughout 2026. Earlier this week, it acquired Israeli defense company Gate Technologies and its Polish manufacturing partner, Bron Technologies, in a transaction valued at approximately $205 million. Gate develops electronic safe-and-arm devices and electronic fuzing systems used in precision weapons.
Earlier in the year, Ondas acquired Israeli defense companies including Omnisys, which develops AI-powered battlefield optimization software, and Aran Defense, the defense division of Israeli engineering and manufacturing company Aran.
It also acquired DZYNE Technologies, a U.S.-based defense technology company focused on long-range intelligence, surveillance and reconnaissance, counter-drone systems and precision strike. That transaction included $200 million in cash and approximately $675 million in Ondas shares.
The company's Israeli acquisition spree has included companies working across drones, robotics, counter-drone systems, optics and other defense technologies.
Ondas' financial capacity has expanded alongside that acquisition drive. The company ended the second quarter with approximately $1.4 billion in cash, cash equivalents, restricted cash and short-term investments. It reported second-quarter revenue of $83.8 million, compared with $6.3 million a year earlier, and raised its full-year 2026 revenue target to between $525 million and $550 million.
The company subsequently used approximately $325 million of cash to close the acquisitions of DZYNE and Cyberhawk during the third quarter.
Ondas has also been building a senior Israeli defense leadership team. Former Mossad director David Barnea joined Ondas Defense in August as global president and chairman.
Ondas Israel is led by Oshri Lugassy, a former IDF chief combat engineering officer and former vice president of sales at Rafael. The company has also recruited other senior figures from Israel's defense establishment.
Ondas did not provide a comment.
