Ondas Holdings Inc. (NASDAQ: ONDS) announced a definitive all‑stock merger with Bethesda‑based defense prime contractor Mistral Inc. The transaction, valued at approximately $175 million, will close in the second quarter of 2026. The deal gives Ondas immediate prime‑contractor status on Mistral’s existing DoD contracts, allowing the company to bid directly for U.S. Department of Defense programs and to leverage Mistral’s manufacturing and integration infrastructure.
Mistral has served as a prime contractor on more than $1 billion of IDIQ and Department of Defense contracts, including a $982 million multi‑year IDIQ for the U.S. Army’s Lethal Unmanned System program and a $73.6 million contract with USSOCOM for ground‑organic loitering munitions. The company’s Bethesda headquarters houses U.S.‑based manufacturing, assembly, integration, and quality‑assurance facilities that will support Ondas’ expanded product portfolio.
Ondas has built a portfolio of autonomous aerial and ground systems, including the Optimus drone, which received Blue List status from the Defense Contract Management Agency, and the SentriX counter‑drone platform. In 2025, the company generated $49.7–$50.7 million in revenue, a sharp increase from $7.2 million in 2024, and reported preliminary Q4 2025 revenue of $29.1–$30.1 million, exceeding analyst expectations. Management reiterated its 2026 revenue outlook of $170–$180 million in January 2026, a range that reflects confidence in the expanded pipeline.
The merger transforms Ondas from a niche subcontractor into a full‑service defense solutions provider. By gaining prime‑contractor status, Ondas can now compete for high‑value DoD contracts without the subcontracting barrier, creating a ready pipeline of opportunities. The combination also expands the company’s reach into federal, state, and local government programs, positioning it to capture a larger share of the growing autonomous systems and counter‑drone market.
Eric Brock, Chairman and CEO of Ondas Holdings Inc., said, “This Blue List designation marks an important milestone for Ondas and American Robotics. It validates the Optimus drone as a secure, reliable, and operationally proven platform for defense use. We remain focused on delivering trusted, dual‑use autonomous systems designed to strengthen national security and enhance mission effectiveness.” Eyal Banai, CEO of Mistral Inc., added, “Joining Ondas represents an exciting new chapter for Mistral.” Yoav Banai, Senior Vice President at Mistral Inc., noted, “This contract marks a significant milestone in our partnership with the U.S. Army and our strategic collaboration with UVision.”
Ondas’ liquidity position remains strong, with pro‑forma cash exceeding $1.5 billion after a $1 billion capital raise on January 12, 2026. The company’s all‑stock transaction structure and the expected closing in Q2 2026 provide a clear path to integrating Mistral’s capabilities while preserving capital for future growth initiatives.
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