Ondas Inc. (ONDS) announced Thursday it has agreed to acquire Cyberhawk for about $125 million, a move that blends autonomous drones with AI-powered inspection software to monitor critical infrastructure like power lines and pipelines. Think of it as giving a drone not just eyes, but a brain that knows what to look for.
The deal, expected to close in the third quarter of 2026, is mostly cash—about 95% of it. Some Cyberhawk executives will reinvest roughly $5 million into Ondas stock, agreeing not to sell for a year. That's a vote of confidence, or at least a handcuff.
Ondas isn't short on cash. At the end of the first quarter, it reported about $1.48 billion in cash, restricted cash, and short-term investments. So the $125 million price tag is manageable.
Cyberhawk isn't a startup playing with toy drones. It serves more than 300 customers across 40 countries, including heavyweights like PG&E, Southern California Edison, Shell, SSE, ESB, Qatar Energy, and Bechtel. The company has inspected over 500,000 infrastructure assets and built a proprietary database exceeding 232 terabytes—enough data to train AI models that spot cracks, corrosion, or other problems before they become disasters.
Ondas Chairman and CEO Eric Brock framed the acquisition as a strategic expansion: "The company has built a highly differentiated platform combining software, data, AI-enabled analytics, and deep domain expertise across some of the world's most important utility and energy networks." He added, "The acquisition will significantly expand Ondas' presence in critical infrastructure markets while strengthening our position as a dual-use technology company serving defense, security and industrial customers."
Financially, Cyberhawk looks solid. It expects to generate more than $45 million in revenue during its fiscal year ending March 2027. About 95% of that is recurring, locked in through multi-year contracts and software subscriptions. The company also has a $95 million backlog and expects EBITDA margins to expand from the high single digits to over 25% by 2030. That's a trajectory investors like to see.
Cyberhawk founder and CEO Chris Fleming sounded optimistic about the combination: "Today, we're excited to join forces with Ondas to accelerate the adoption of this technology – improving data quality while fundamentally reducing risk and human exposure across critical infrastructure."
Lincoln International LLP advised Cyberhawk shareholders on the deal.
As for Ondas stock, it was down 0.59% at $9.40 on Thursday. Sometimes the market needs a moment to digest a big move.
