Ondas Holdings (ONDS) Acquires Cyberhawk Holdings for $125M

Cyberhawk uses drones and software to inspect power lines, oil and gas facilities, wind farms, and other critical infrastructure so companies can find problems without sending people into dangerous locations. 

Purchase Price

• Enterprise Value: Approximately $125 million

• Structure: Approximately 95% cash

• About $5 million of the consideration will be rolled into Ondas common stock by members of Cyberhawk's leadership team, who agreed to a one-year lockup.

Software Revenue

Cyberhawk also has:

• $7.6 million Annual Recurring Revenue (ARR) from software

• 85% revenue visibility

• 112% Net Revenue Retention, indicating existing customers are expanding their spending over time.

Profitability

Current EBITDA margins are described as high single digits, but management believes they can expand to 25%+ by 2030 as the business scales. That target is management's outlook, not guidance that should be viewed as assured.

According to Ondas, Cyberhawk brings existing infrastructure, contracts, and business:

• Operations in 40 countries

• 300+ customers

• 500,000+ infrastructure assets inspected

• 232+ terabytes of proprietary inspection data

• Customers include:

  • PG&E

  • Southern California Edison

  • Shell

  • Bechtel

  • Qatar Energy

  • SSE

  • ESB

Press Release