West Palm Beach, Florida, March 9, 2026, 12:04 EDT
- Ondas has agreed to buy Mistral, a defense contractor, in an all-stock deal that values the acquisition at $175 million.
- The deal involves escrowed shares with releases staggered over time, and the company is aiming to wrap things up in the second quarter.
- Ondas put out early 2025 numbers that topped its earlier guidance, and the company stuck with its revenue forecast for 2026.
Ondas Inc (ONDS) is picking up defense contractor Mistral Inc in an all-stock deal pegged at $175 million, the company said in a regulatory filing.
The company is pushing further into U.S. defense and public safety, zeroing in on contract access and domestic production, which are on par with hardware in importance these days. Ondas pointed to Mistral’s “prime contractor” status, its U.S. manufacturing footprint, and a ready-made contracting setup at both federal and state levels, plus entry points to Army and Special Operations contracts. 1
Ondas turned out preliminary numbers for the fourth quarter and full-year 2025, reporting revenue above what it had forecast back in January. The company is sticking to its 2026 revenue target of $170 million to $180 million, a figure that doesn’t factor in any acquisitions it might announce in 2026. Ondas reported pro-forma cash and cash equivalents topping $1.5 billion at the end of December—bolstered by roughly $1 billion raised in January. 2
According to the filing, payment will come in stages: some will go into escrow, another portion arrives in installments soon after closing, and more shares get released over a three-year period. Ondas expects to wrap up the deal in the second quarter, pending Mistral stockholder approval and regulatory sign-off.
Eric Brock, who serves as chairman and chief executive at Ondas, pointed to Mistral’s “prime contractor capabilities” as a strong fit with Ondas’ autonomous air and ground systems. Mistral CEO Eyal Banai described the deal as a way to gain “scale” and expand his team’s offerings for customers, but said the focus on delivery wouldn’t change. 1
Ondas is still in the red, based on its preliminary results. The company is projecting a net loss for the full year in the $52.8 million to $53.3 million range. Adjusted EBITDA, which excludes depreciation, amortization and stock comp, is expected to land between negative $32.4 million and negative $32.9 million. 2
Ondas shares slipped roughly 4% late in the morning. The broader U.S. market edged down as well.
Ondas isn’t the only company targeting defense buyers for drone tech. In late February, AeroVironment disclosed a $186 million delivery order from the U.S. Army for its Switchblade loitering munitions, according to Aviation Investor. The unmanned systems maker is also listed in the U.S.
Still, there’s plenty that could go wrong with the Ondas-Mistral merger. Delays in approvals or any change in Mistral’s business ahead of closing could kill the deal under its current terms. With an all-stock setup, Ondas is also left vulnerable to shifts in its own share price.
All eyes will be on March 25, when Ondas is set to release its full 2025 results. Investors, in particular, are hoping for deeper insight into the company’s projections around Mistral and Ondas’ broader outlook. 2
