Ondas Acquires Israeli Gate Technologies for $205 Million to Expand into Munitions

The acquisition gives Ondas a presence in the munitions fuzing sector. Gate Technologies and Bron Technologies develop and manufacture electronic safe-and-arm devices and advanced electronic fuzing systems used in missiles, rockets, UAVs and loitering munitions.

Gate’s products are integrated into more than 90 weapon systems. Its systems help keep weapons safe during storage, transportation and handling, and arm them only when specific mission and safety conditions are met.

Under the deal, Ondas will pay $105 million in cash and $100 million in Ondas shares, along with a working capital adjustment. The transaction also includes up to $185 million in additional performance-based earn-out payments tied to financial targets through 2028.

The acquisition expands Ondas’ defense portfolio beyond its previous focus on ground robotics and autonomous drones. The company said electronic fuzing systems are becoming increasingly important as militaries increase production and rebuild stocks of precision-strike weapons.

Gate’s RUBI family of electronic safe-and-arm devices has been developed in around 100 configurations for rockets, missiles, UAVs and other weapon systems. Ondas also said the sector has limited qualified production capacity, making these components an important part of the precision-strike supply chain.

“GATE is a highly strategic addition to Ondas,” said Eric Brock, Chairman and CEO of Ondas. “Munitions stockpiles are being rebuilt around the world, and a new generation of low-cost, autonomous munitions is becoming a growing part of the battlefield. At the same time, the market is shifting from traditional mechanical fuzes to electronic safe-and-arm devices, which are essential for weapons that are smaller, smarter and software-defined. GATE’s RUBI product line and its engineering team have earned a strong position in this market through decades of qualification and integration into more than 90 weapon systems. With Ondas’ global go-to-market and operating platform behind it, we believe GATE can capture meaningful market share.”

“ESAD components are in tight supply today, and qualified production capacity is a bottleneck for the entire precision-strike supply chain. GATE has earned the trust of a broad base of defense OEMs and weapon programs around the world, and that customer base comes first. Ondas is committed to serving the entire market with low-cost, advanced fuzing capabilities, and we will invest in GATE’s capacity, engineering and global reach so it can support more customers and more programs. Combined with GATE’s attractive growth and margin profile, we expect this acquisition to generate high returns on invested capital for our shareholders,” Brock concluded.

Bron Technologies will provide Ondas with a NATO-based manufacturing operation in Europe, while Gate’s Israeli operations will continue as part of the acquired business. Around 80% of Gate’s revenue comes from outside the Middle East.

Ondas expects Gate to generate approximately $65 million in revenue in 2026, increasing to $180 million in 2028. The acquired business is also expected to generate more than $130 million in adjusted EBITDA over the three years through 2028.

About Ondas Inc.

Ondas Inc. (Nasdaq: ONDS) is a U.S.-based technology company focused on autonomous systems, robotics and mission critical technologies. The company develops unmanned and autonomous solutions for defense, homeland security, public safety, critical infrastructure, and industrial markets. Its portfolio includes autonomous drones, counter UAS systems, robotic ground platforms, unmanned aircraft, sensing and communications technologies and other solutions designed for complex operational environments. Ondas serves government, defense and commercial customers across global markets.

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