Ondas Holdings Inc (NASDAQ:ONDS) announced a definitive agreement to acquire Cyberhawk, a global provider of drone-based inspections and infrastructure intelligence, for approximately $125 million. The company said the transaction, which is expected to be roughly 95% cash-funded, will expand Ondas' footprint in autonomous infrastructure intelligence by bringing together Cyberhawk's inspection services, AI-assisted asset analytics and enterprise visualization tools with Ondas' current autonomous systems and defense technologies.
On the news, Ondas shares moved higher in early trading - up about 3% in premarket trade Thursday - reflecting investor reaction to the strategic combination.
Cyberhawk, which conducts operations in 40 countries and serves more than 300 customers, counts utilities and energy firms among its clientele. The company lists customers including PG&E, Southern California Edison, Shell and Qatar Energy. Management projects more than $45 million in revenues for the fiscal year ending March 2027, with roughly 95% of that revenue recurring and a backlog of $95 million.
Current profitability metrics for Cyberhawk include high single-digit EBITDA margins. Company management expects margins can be expanded to in excess of 25% by 2030, according to the announcement.
The timetable for the transaction anticipates a close during the third quarter of 2026, subject to customary closing conditions and regulatory approvals. As part of the deal, certain members of Cyberhawk's leadership team have agreed to roll approximately $5 million of proceeds into Ondas common stock, which will be subject to a one-year lock-up period.
Cyberhawk's operational track record includes inspections of more than 500,000 infrastructure assets and accumulation of over 232 terabytes of proprietary infrastructure inspection data. The company's cloud-based iHawk platform allows customers to visualize and analyze complex infrastructure through digital-twin workflows and AI-assisted analytics, providing a centralized environment for asset inspection data and enterprise visualization.
Ondas framed the acquisition as a way to strengthen its position in critical infrastructure markets and to bolster its dual-use technology platform serving defense, security and industrial customers. Cyberhawk is expected to continue operating its existing businesses without interruption after the transaction closes.
Lincoln International LLP served as exclusive financial advisor to Cyberhawk shareholders in connection with the transaction.
Summary
Ondas will acquire Cyberhawk for roughly $125 million, largely cash-funded, adding drone inspection services, AI-enabled analytics and visualization software to its autonomous systems and defense offerings. The deal is slated to close in the third quarter of 2026, pending customary conditions and regulatory approval, and prompted a roughly 3% premarket rise in Ondas shares.
Key points
- The acquisition price is approximately $125 million and is expected to be 95% cash-funded.
- Cyberhawk operates in 40 countries, serves more than 300 customers, and forecasts over $45 million in revenue for the fiscal year ending March 2027 with about 95% recurring revenue and a $95 million backlog.
- Cyberhawk brings a cloud-based iHawk platform, over 232 terabytes of inspection data and a record of inspecting more than 500,000 assets.
Risks and uncertainties
- The closing of the deal is subject to customary closing conditions and regulatory approvals, which could delay or prevent completion - this affects corporate transaction and regulatory risk for the industrial and defense sectors.
- Cyberhawk's current EBITDA margins are in the high single digits; management expects margin expansion to more than 25% by 2030, but realization of that improvement is uncertain and impacts profitability expectations in the infrastructure inspection and industrial markets.
- Certain members of Cyberhawk's leadership will roll approximately $5 million into Ondas stock with a one-year lock-up, which concentrates a portion of sale proceeds and ties leadership incentives to Ondas' share performance - introducing execution and integration risk for both companies.