Unknown investor, expanding arsenal: Ondas buys four defense firms in days
The deal to acquire Indo Earth Moving expands the U.S.-registered company’s rapid takeover of Israeli defense firms.
The aggressive acquisition campaign of the U.S.-registered holding company Ondas, backed by an investor whose identity remains undisclosed, is continuing even amid a regional war in the Middle East. Within just a week and a half, the company has expanded its portfolio with four acquisitions in the defense manufacturing sector.
On Tuesday, Ondas announced that it had acquired Indo Earth Moving, an Israeli company operating in heavy engineering equipment. The company views the acquisition as an opportunity to enhance its ability to adapt mechanical engineering equipment for operations in combat zones and high-risk environments, while integrating these capabilities with robotic and autonomous ground systems developed by other firms in its portfolio, including Roboteam and 4M Defense.
A day earlier, Ondas reported completing the acquisition of UK-based Rotron Aerospace, which develops unmanned aerial vehicles. The financial terms were not disclosed. Beyond establishing a foothold in the British market, the acquisition is expected to provide Ondas with access to defense tenders and procurement programs in the UK and NATO.
In addition, last week Ondas acquired a 50% stake in Israeli company BIRD Aerosystems from the FIMI fund, led by Ishay Davidi, for more than $65 million, reflecting a company valuation of $133 million. BIRD develops protection systems for transport aircraft and helicopters against ground-launched missiles.
A few days earlier, Ondas acquired U.S.-based defense contractor Mistral from businessman Eyal Banai for $175 million in a stock deal. Mistral operates in the American defense market and participates in U.S. government military programs. Following the acquisition, Ondas plans to integrate Mistral’s operations with those of other subsidiaries it has acquired over the past two years, most of them Israeli.
Ondas’ growing portfolio now includes 13 companies, most of them in the unmanned systems sector. The acquisition spree is being financed by capital from an undisclosed investor. In January, the company raised approximately $1 billion from this investor, while also pursuing additional acquisitions, including subsidiaries of Rafael such as Aeronautics, Controp, and mPrest.
However, a review by the Defense Ministry’s Director of Security of the Defense Establishment has delayed Ondas’ attempt to acquire mPrest, due to the company’s critical role in the Iron Dome air defense system. Rafael currently holds a 43% stake in mPrest, while Ondas is seeking to acquire shares from other stakeholders, including founder Natan Barak and the OurCrowd fund, in a deal valued at over $200 million.
Such a move would leave Rafael as a minority shareholder, raising questions about the strategic implications and potential benefits of the transaction.
The defense establishment has declined to comment on whether it knows the identity of the investor backing Ondas, or on the status of ongoing reviews by the National Security Council. Security sources told Calcalist that the continued delay in approving the mPrest deal reflects broader concerns.
Ondas is led by former senior officials from Israel’s defense establishment and industry. Its Israel CEO is Brigadier General (res.) Oshri Lugassy, formerly a senior engineering officer in the IDF and VP of sales at Rafael. The company’s leadership also includes several former Rafael executives and senior defense officials, underscoring its deep ties to Israel’s security sector.
