Ondas Inc. (ONDS) announced Monday it has acquired Israel-based GATE Technologies Ltd. and its affiliated company Bron Technologies for $205 million, with potential earn-out payments of up to $185 million tied to performance targets through 2028, bringing the total deal value to $390 million.
ONDS stock was up 2.01% at $7.375 following the news.
The upfront payment breaks down to $105 million in cash and $100 million in Ondas common stock, plus a working capital adjustment. The earn-out portion may be paid in cash or Ondas stock at the company’s discretion.
GATE Technologies, founded in 2006, develops Electronic Safe & Arm Devices (ESADs) and electronic fuzing systems. These are components used in precision weapons including rockets, missiles, UAVs and loitering munitions. Its products have been integrated into dozens of weapon systems globally.
GATE’s RUBI product line alone has been configured for around 100 different applications across various weapon platforms.
Ondas projects GATE will generate $65 million in revenue for full year 2026, scaling to $180 million by 2028. The company expects the acquired business to contribute more than $130 million of aggregate adjusted EBITDA through 2028.
Eric Brock, Chairman and CEO of Ondas, pointed to supply constraints in the sector: “ESAD components are in tight supply today, and qualified production capacity is a bottleneck for the entire precision-strike supply chain.”
Brock added that Ondas plans to invest in GATE’s capacity, engineering and global reach to support more customers and programs.
Approximately 80% of GATE’s revenue comes from outside the Middle East. Bron Technologies, based in Poland, gives Ondas an established foothold for European and allied defense customers.
Ondas said it has begun building out U.S. engineering and production capabilities, with U.S.-produced products expected in the first half of 2027.
The market backdrop is supportive. MarketsandMarkets data cited by Ondas projects the global loitering munition market will grow from around $5.4 billion in 2025 to approximately $13.3 billion by 2030.
In connection with the deal, Ondas approved stock options exercisable for 300,000 units at $7.23 per share for 41 newly-hired employees under its 2026 Inducement Plan.
ONDS was trading at $7.375, up $0.145 on the day at the time of the announcement.
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