Ondas accelerates integration plan for drone segment

Ondas Holdings is accelerating its integration plan for its drone segment ahead of the AIROBOTICS acquisition. In anticipation of closing its acquisition of Airobotics later this month, Ondas has accelerated the integration efforts between American Robotics and Airobotics. These integration plans include a streamlined product roadmap strategy and customer support plans, in addition to a reduction of personnel at American Robotics. This is part of Ondas’ broader efforts to direct spending and investment to focus on near-term revenue generation and return on investment both of which can be enhanced by streamlining operations within its drone segment as the Company prepares to combine the two businesses. The integration plan is expected to result in approximately $18 – 20 million of annual cost savings for the segment compared to if Ondas continued to operate both entities as separate businesses upon closing of the Airobotics acquisition. The Company anticipates one-time costs of approximately $0.5 million during the first quarter of 2023 in connection with the integration plan. The acquisition of Airobotics remains on track and is expected to close by the end of January 2023. Additionally, the Company intends to hold a virtual investor event in February 2023 to provide further details on the integration of American Robotics and Airobotics, along with the overall outlook for the Company in 2023.