EOS to sell EM Solutions to Cohort plc

Canberra-based Electro Optic Systems Holdings Limited has agreed to sell its Naval Satellite Communications (SATCOM) subsidiary, EM Solutions Pty Limited to UK firm Cohort plc for about $144 million. The sale has received approval from the Australian government’s Foreign Investment Review Board (FIRB).

The Proposed Transaction aligns with EOS’s transformation strategy to focus on commercialising its substantial intellectual property and growing its core product offerings in the areas of Remote Weapon Systems (RWS), High Energy Laser Weapons and Space Control.

In particular, EOS sees a compelling growth opportunity in the counter-drone market for both Remote Weapon Systems and High Energy Laser Weapons. The sale of EM Solutions is expected to provide EOS with the funding flexibility to more fully pursue these growth opportunities.

“The Proposed Transaction clearly demonstrates EOS’ strategic focus and determination to succeed in the rapidly evolving and growing counter-drone market,” said Andreas Schwer, EOS CEO and Managing Director. “We had strong interest from the market in the EM Solutions business, and by releasing capital at this time, we are very well placed to execute our EOS growth strategy. We will continue to deploy capital in a disciplined way. Given the AUKUS partnership, we believe that Cohort is the ideal owner for EM Solutions.”

The Reading, UK-based Cohort group is a diversified high-technology firm that already operates six separate defence sensor, communications and data businesses (some of them based in Portugal and Germany), supporting the UK Ministry of Defence, UK armed forces and export customers.