Mystery-funded defense firm Ondas expands Israeli buying spree with Bird Aerosystems acquisition at $133 million valuation
The deal expands the U.S.-registered company’s rapid takeover of Israeli defense firms.
In the midst of a regional war in the Middle East, Ondas, a U.S.-registered defense company, continues its rapid acquisition spree of Israeli defense firms using capital whose source it refuses to disclose. After acquiring about ten companies in the fields of military robotics and drones over the past year, the company is now expanding into airborne defense systems through the acquisition of Bird Aerosystems from the FIMI fund, headed by Ishay Davidi, in a deal valuing the company at $133 million. The acquisition makes Bird the 11th company in Ondas’ growing portfolio.
Bird develops airborne defense systems designed primarily for transport aircraft and helicopters operating in combat zones. When its systems detect incoming missile launches, they activate countermeasure technologies that divert the missiles from their attack path. In addition to aircraft protection systems, Bird also develops real-time airborne intelligence and surveillance technologies, used in ongoing security and border protection missions around the world.
Founded in Israel in 2001, Bird said its systems are installed on more than 700 airborne platforms across over 40 aircraft types, supporting defense, government and special mission aviation operators including the U.S. Army, NATO forces, leading air forces that are part of APAC and United Nations aviation fleets.
FIMI acquired 50% of Bird Aerosystems in 2018 for about $40 million, and is now selling its stake for more than $65 million.
In a filing to Nasdaq, Ondas stated that the acquisition includes agreements ensuring that Bird’s current management and employees will remain with the company and integrate into the broader services Ondas offers to customers worldwide.
In a statement announcing the acquisition, Oshri Lugassy, co-CEO of Ondas and a former senior executive at Rafael Advanced Defense Systems as well as a former chief engineering officer in the IDF, said the company is “building a unique platform combining autonomous systems, advanced sensing technologies and mission intelligence capabilities designed to address modern defense and security challenges."
According to Lugassy, adding Bird to Ondas’ portfolio provides the company with access to airborne technologies already proven in combat environments. He added that integrating Bird’s capabilities would strengthen Ondas’ ability to deliver integrated solutions for UAV defense, airspace monitoring, border protection and other security missions.
The Bird acquisition is the second deal Ondas has announced in less than a week. Earlier, the company agreed to acquire Mistral, owned by businessman Eyal Banai, for $175 million in a stock transaction.
Mistral operates out of Maryland and focuses on the U.S. defense market, participating in military and security programs for the American government. As part of the transaction, Mistral will merge with an existing Ondas subsidiary. The company said the deal is expected to give Ondas direct access to large U.S. government defense contracts as well as production and integration infrastructure for systems used by the American military.
Ondas’ aggressive expansion has raised questions across the Israeli defense industry. In January, the company raised roughly $1 billion from an undisclosed investor, a move that has generated considerable speculation in defense circles due to the lack of transparency regarding the funding source.
Meanwhile, Ondas continues to attract senior executives from Israel’s defense industry. Calcalist has learned that Zvika Yarom, who has served as director of IAI’s Elta Land Systems division for the past six years, recently announced her resignation and is expected to join Ondas.
Yarom is considered one of Elta’s most senior executives and was a candidate two years ago for the position of CEO of Elta, following the departure of Yoav Turgeman, who became CEO of Rafael. The position ultimately went to Dror Bar.
Earlier in her career, Yarom played a role in developing the radar for Rafael’s “Windbreaker” (Trophy) active protection system for tanks and armored personnel carriers. For his contribution to the project, he received the Israel Defense Prize in 2014.
Like the moves of other senior defense industry figures to Ondas, his transition highlights growing concerns within Israel’s defense establishment about the movement of strategic knowledge and expertise from state-owned companies into private ventures.
Ondas and Zvika Yarom declined to comment.
