This article is based on an official press release from Ondas Holdings.

Ondas Holdings to Acquire Rotron Aero, Signaling Shift into Kinetic Defense Market

Ondas Holdings Inc. (NASDAQ: ONDS) has announced a definitive agreement to acquire Rotron Aero, a United Kingdom-based specialist in advanced rotary engines and unmanned aerial systems (UAS). The Acquisitions represents a significant strategic pivot for Ondas, expanding its portfolio from primarily surveillance and data solutions into the “kinetic” defense sector, specifically targeting the market for loitering munitions and heavy-fuel propulsion systems.

According to the company’s announcement on February 2, 2026, the transaction will be structured as a combination of cash and stock. The deal is subject to customary closing conditions, including regulatory approval under the United Kingdom’s National Security and Investment (NSI) Act, which governs the acquisition of sensitive dual-use and military technologies.

The acquisition targets Rotron Aerospace Limited, founded by Gilo Cardozo, and is distinct from the U.S.-based component manufacturer AMETEK Rotron. By integrating Rotron’s proprietary propulsion technology, Ondas aims to secure a critical supply chain for heavy-fuel engines, a key requirement for military logistics, while adding autonomous attack capabilities to its fleet.

Strategic Rationale: Vertical Integration and Lethal Capabilities

Ondas Holdings described the move as a “vertical integration” play designed to reduce dependence on third-party vendors while entering the high-demand market for precision strike capabilities. The acquisition introduces two primary assets to the Ondas ecosystem: the Defendor loitering munition and a proprietary line of heavy-fuel rotary engines.

Entering the Loitering Munition Market

The addition of the Defendor system allows Ondas to compete in the “attritable warfare” sector, low-cost, expendable unmanned systems designed for one-way missions. This moves the company beyond Intelligence, Surveillance, and Reconnaissance (ISR) into direct combat support.

“Modern conflicts demand systems that can operate at range, persist over time, and execute missions without continuous human control.”

, Eric Brock, CEO of Ondas Holdings

Securing the Supply Chain

A critical component of the deal is Rotron’s expertise in heavy-fuel engines, which run on JP-8 or Jet-A1 fuel. These fuels are standard for military logistics, making the engines highly valuable for NATO and allied defense programs. By owning the engine manufacturer, Ondas mitigates supply chain risks often associated with high-performance drone propulsion.

About Rotron Aero

Headquartered in the United Kingdom, Rotron Aero was established in 2008 and has developed a reputation for high-power-to-weight ratio propulsion systems. The company’s technology portfolio includes:

• Heavy-Fuel Engines: Rotary engines designed for reliability in contested environments.
• Talon eVTOL: A vertical take-off and landing platform suitable for multi-role missions.
• Defendor: An autonomous loitering munition system.

Gilo Cardozo, Founder of Rotron, emphasized the synergy between the two companies in the official release.

“This marks a defining moment in Rotron’s journey… By combining our propulsion-led engineering… with Ondas’ autonomous systems architecture… we will gain the scale to deliver more capability, faster.”

, Gilo Cardozo, Founder of Rotron Aero

AirPro News Analysis

From Surveillance to Strike: This acquisition places Ondas in direct competition with established defense players like AeroVironment, maker of the Switchblade, and newer disruptors like Anduril Industries. The shift to “kinetic” systems suggests Ondas is responding to the rapid evolution of drone warfare observed in recent global conflicts, where the line between reconnaissance and strike capabilities has blurred.

Regulatory Hurdles: The requirement for approval under the UK’s National Security and Investment Act is not a trivial formality. As Rotron possesses sovereign UK defense capabilities, regulators will likely scrutinize the transfer of intellectual property to a US-based holding company. However, the deal also promises to establish a stronger physical foothold for Ondas in the UK and NATO markets, potentially opening doors to Ministry of Defence programs that require local manufacturing.

Financial Context: While specific financial terms were not disclosed in the press release, market data suggests Rotron is a specialized engineering firm rather than a mass manufacturer. This indicates the acquisition is likely an “acqui-hire” and IP play intended to bolster Ondas’ technical depth rather than immediately adding massive revenue volume.

Frequently Asked Questions

What is the difference between Rotron Aero and AMETEK Rotron?
Rotron Aero (Rotron Aerospace Limited) is a UK-based company founded by Gilo Cardozo that specializes in drone engines and loitering munitions. AMETEK Rotron is a separate, US-based entity known for manufacturing cooling fans and blowers. Ondas is acquiring the UK-based Rotron Aero.

What is a “heavy-fuel” engine?
Heavy-fuel engines operate on kerosene-based fuels like JP-8 or Jet-A1, which are the standard fuels used by military aircraft and vehicles. Most commercial drones use gasoline or batteries, which creates logistical challenges in combat zones where gasoline is scarce and dangerous to transport.

When will the deal close?
The deal was announced on February 2, 2026. It is currently subject to regulatory review, including a standard assessment period under the UK NSI Act, which typically takes 30 working days but can be extended.

Sources: Ondas Holdings Press Release