On August 26, 2025, Ondas Holdings Inc. made headlines by announcing a definitive agreement to acquire a controlling 51% stake in S.P.O. Smart Precision Optics LTD (SPO). SPO is an Israeli leader in developing advanced precision optical components and systems.
This move strengthens Ondas’ foothold in advanced electro-optics, with direct applications in missile defense and counter-drone technologies. The acquisition also fits Ondas’ long-term plan to grow its global platform in a capital-efficient way and broaden its portfolio beyond drones and wireless solutions.
Strengthening the Defense Technology Portfolio
SPO stands out as one of Israel’s critical defense suppliers, delivering military-grade precision optics to strategic programs. These components are essential for high-performance imaging, laser systems, and targeting solutions.
Ondas now gains access to SPO’s proprietary manufacturing processes and its tight integration with Israel’s defense industry. That’s a pretty specialized and highly regulated market to step into.
Why Precision Optics Matter in Modern Warfare
In today’s defense world, precision optics play a huge role in enabling advanced weapon systems and surveillance platforms. They improve missile guidance accuracy and help detect unmanned aerial threats.
High-quality optical technology gives a real edge. By taking a majority stake in SPO, Ondas boosts its ability to deliver integrated solutions that combine optics, AI, and wireless communications.
Diversifying Beyond Drones and Wireless
Before the SPO deal, Ondas was mostly known for two main operating divisions:
- Ondas Autonomous Systems – Developer of AI-powered defense and security drones with counter-drone capabilities.
- Ondas Networks – Provider of software-defined wireless broadband systems for mission-critical industrial IoT applications.
Those areas still matter for the company’s future. But the SPO acquisition pushes Ondas into optical engineering, opening up chances to develop cross-domain defense solutions.
This move also helps Ondas avoid depending too much on any single market segment. In a security landscape that never sits still, that’s probably a smart play.
Integration of Technologies for Next-Generation Systems
By combining its drone and wireless know-how with SPO’s optical engineering, Ondas can create more tightly integrated systems for surveillance, targeting, and threat mitigation. This synergy could lead to new applications like autonomous counter-drone defense units and advanced missile detection systems built for complex, contested environments.
Financial and Market Implications
Ondas Holdings currently has a market capitalization of $1.32 billion. The recent announcement has sparked some optimism among technical analysts, who’ve labeled the trading sentiment as a “Buy” signal.
Still, Wall Street’s broader consensus feels a bit more cautious. Analysts have kept a Hold rating on Ondas stock, with a price target of $5.00.
Mixed Signals from Analysts
TipRanks’ AI-driven Spark analysis rates the stock as “Neutral,” pointing out both opportunities and risks. The analysis notes:
- Strengths – Strategic move into electro-optics, strong technical momentum, and access to critical defense supply chains.
- Challenges – Ongoing financial pressures and concerns about valuation levels after the acquisition.
There’s a real split in sentiment here, balancing Ondas’ technological promise with the need for careful financial management as it brings SPO into the fold.
Potential Strategic Benefits
If Ondas Holdings pulls this off, the acquisition could bring some real advantages, like:
- Faster entry into tough-to-crack defense markets.
- Standing out more by combining optical, AI, and wireless tech.
- More stability thanks to a wider mix of products and revenue sources.
In defense tech, the companies that weave together advanced capabilities are the ones to watch. Maybe this deal gives Ondas the boost it needs—assuming it can handle the bumps along the way.
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Here is the source article for this story: Ondas Holdings Acquires 51% Stake in SPO