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Ondas buys Cyberhawk for about $125 million, boosting shares
Ondas funded the deal largely with cash and stock issuance, and faces an unusually large short interest of about 40% as it works to convert a $450 million-plus backlog into revenue.
Ondas (ONDS) said it acquired Cyberhawk, a drone inspection company that uses AI to check critical infrastructure such as power lines and pipelines, in a deal that cost about $125 million, mostly in cash, Yahoo Finance reported. The news lifted ONDS shares by roughly 4%. The acquisition adds to Ondas' longer run of purchases that have reshaped the company from a smaller drone maker into a larger defense and infrastructure business. Over the past month, the stock price has increased about 29%, even as short sellers have piled in.
Yahoo Finance reported that short interest is around 40% of the float, reflecting bets that the stock will fall. The article points to dilution risk from Ondas paying for acquisitions through issuing stock, including a roughly $1 billion equity offering, which could add pressure on existing shareholders.
Another concern is conversion of demand into results. While Ondas has a backlog of more than $450 million in orders, the company has been slower to turn that backlog into revenue, according to Yahoo Finance; the bears are betting that gap persists. Bulls argue the company pulled in more than $150 million of orders in the second quarter and has raised its 2026 revenue target to at least $525 million, with CEO Eric Brock emphasizing the need to convert backlog into deliveries, revenue growth, and cash flow, with earnings due Aug. 13 as a key test.