American defense technology company Ondas is continuing to expand its operations in Israel and has signed an agreement to acquire Aran Research & Development's manufacturing operations by purchasing all shares of Aran Defense.
This subsidiary consolidates those activities for NIS 100 million ($33.9m.).
The acquisition, announced July 24, aims to expand Ondas’ engineering, manufacturing, and production capabilities in Israel as demand grows for autonomous defense systems.
Aran Defense provides engineering and manufacturing services to Israel’s Defense Ministry, international defense companies, and other government and national security customers.
Ondas said the acquisition will strengthen its presence in Israel’s defense-industrial base while giving the company additional capacity to develop, integrate, and manufacture autonomous systems locally.
Strengthening Israel’s autonomous defense manufacturing base
Aran is traded on the Tel Aviv Stock Exchange at a market value of approximately NIS 200m. ($67.8m.). The division generated an estimated $17m. in revenue in 2025, with projections of $26m. in 2026.
It operates approximately 4,400 square meters of engineering and manufacturing facilities in Israel. Aran Defense’s capabilities include CNC machining, electromechanical assembly and integration, cabling, classified production areas, quality control, procurement and warehousing, and prototype manufacturing, 3D printing, and new product introduction.
The facilities are expected to play a role in scaling several of Ondas’ defense programs, including the recently announced Digital Bat program. Under that program, Ondas was selected to develop and produce a next-generation tactical attack drone capability for the Defense Ministry, and Aran’s infrastructure is expected to support the transition from development to scalable production.
Eric Brock, the chairman and CEO of Ondas, said that the acquisition aims to help the company build its verticals and develop, manufacture, and deliver different technologies at scale.
“As demand across our defense businesses continues to grow, expanding localized manufacturing capacity is becoming increasingly important to our ability to execute,” he said.
“Aran gives us an established production platform in Israel that can support multiple Ondas businesses and programs, allowing us to industrialize products faster, increase manufacturing scale, and respond more efficiently to customer requirements.”
Ondas said Aran’s existing relationships with Israel’s defense establishment and major defense companies could also provide access to additional programs and operational requirements. At the same time, Ondas plans to use its international customer base to support the expansion of Aran’s capabilities into allied markets.
Oshri Lugassy, the co-CEO of Ondas Autonomous Systems, said Aran’s capabilities will help accelerate development cycles and strengthen manufacturing readiness.
“Aran is a world-class engineering and manufacturing organization, and its addition allows us to meet the urgent needs of our customers by expanding our scalable manufacturing footprint,” Lugassy said
He added that Aran’s engineering teams will support the continued development of counter-UAS systems, ISR platforms, loitering munitions, and autonomous aerial and ground robotic systems.
The transaction comes as Aran Defense’s revenues have grown. The division generated an estimated $17m. in revenue in 2025, up from approximately $12m. in 2024. Revenue for 2026 is expected to reach approximately $26m., with positive EBITDA, according to Ondas.
The acquisition is part of Ondas’ broader push to build a vertically integrated defense technology company spanning the development, manufacturing, and deployment of autonomous systems. Its portfolio includes autonomous drones, counter-UAS systems, robotic ground platforms, unmanned aircraft, and systems for intelligence, surveillance, and reconnaissance missions.