Ondas Inc. Acquires DZYNE Technologies in $875.8M Defense Tech Deal

Ondas Inc. agreed to acquire autonomous aircraft maker DZYNE Technologies in an $875.8 million cash-and-stock deal that positions Ondas as a full-service autonomous defense technology platform the company announced. Investors in DZYNE which is majority owned by private equity firm Highlander Partners and has a corporate office in Irvine will receive $200 million in cash and about $675 million in stock with more than half of those shares locked up for six months according to a statement reviewed by Bloomberg News. DZYNE makes unmanned aircraft for military surveillance and reconnaissance along with smaller autonomous drones and counter-drone systems. Ondas develops autonomous drones counter-drone technology and wireless communications systems for government and industrial customers. The acquisition turns it into a broader defense technology company. DZYNE is expected to generate revenue of $191 million this year and $300 million in 2027 Ondas said in the statement. With the addition of DZYNE and its Ominisys acquisition completed in May Ondas is targeting $525 million in revenue this year an increase from $390 million earlier. Ondas Chief Executive Officer Eric Brock said in a Bloomberg TV interview that the arms race has started and that the United States has de-industrialized over the last 20 plus years moving the supply chain to China. He said the company has to bring scale and put drone companies on operating platforms to justify bringing investments to the US to industrialize. Ondas shares rose as much as 5.7% early this week and were up 4% to $7.71 at 1 p.m. Monday in New York trading giving the company a market value of $3.9 billion.