Ondas (ONDS) stock spending spree continues with Roboteam acquisition
A day after announcing that it had made a $35 million investment in Performance Drone Works (PDW), Ondas Holdings (ONDS) said that it is acquiring Roboteam Holdings, a manufacturer of tactical unmanned ground vehicles (UGVs) that are used for a range of defense operations.
Ondas expects Roboteam to add $3 million to $4 million in revenue in this year's fourth quarter and is projecting $30 million in revenue from the acquisition in 2026.
The company said in an SEC filing that its deal for Roboteam is an all-cash transaction worth $80 million.
Roboteam's fleet of tactical ground robots are used for explosives ordinance disposal (EOD), intelligence, surveillance, and reconnaissance (ISR) and hazardous-environment missions, according to the press release announcing the acquisition.
The vehicles can also be used for commercial applications.
Ondas notes that the UGVs, which are operated through an AI-enabled command-and-control platform called the Roboteam HUB, have been used by numerous defense and security customers including the US Department of War, the US Marine Corps and the Israeli Ministry of Defense.
Omdas provides autonomous aerial and ground robot intelligence through its Ondas Autonomous Systems (OAS) business unit and private wireless solutions through its Ondas Networks unit.
The company said that Roboteam's "combat-validated ecosystem" will help "strengthen Ondas Autonomous Systems' ability to deliver mature, field-tested ground autonomy to defense, homeland security, and public-safety agencies worldwide."
Ondas said the acquisition will also expand its system-of-systems capabilities through the addition of "mature, combat-proven ground autonomy" to its OAS portfolio.
"Roboteam's proven ground robotics complement our autonomous aerial systems, to create a cohesive technology ecosystem capable of serving the full spectrum of defense and public safety missions," Ondas chairman and CEO Eric Brock said in a statement.
"We expect this combination will enable us to deliver greater mission safety, interoperability, and operational effectiveness for customers worldwide."
Ondas said that Roboteam has sold "hundreds" of its UGVs to customers in the defense sector over the years. It recently secured $20 million in orders from one of its existing military customers that will be fulfilled through 2026.
Oshri Lugassi, co-CEO of OAS, said in a statement that Roboteam "will significantly expand our commercial reach," allowing the company to "immediately offer more capability to existing customers and accelerate growth globally across high-demand defense markets."
Both of its transactions this week are aimed at strengthening Ondas' position within the defense sector.
Its $35 million investment in PDW gives the company further access into the fast-growing drone market, which has become one of the hottest sectors this year.
PDW has a 90K square foot manufacturing facility in Huntsville, Alabama that has the capacity to manufacture up to 100K advanced drone systems a year that are compliant with the National Defense Authorization Act (NDAA).
The drone-warfare market is expected to grow to $75 billion globally by 2035. Ondas' stock has surged nearly 230% for the year.