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Australian defence company Electro Optic Systems has announced entry into a binding agreement to divest its naval satellite communications subsidiary, EM Solutions, to Cohort plc for an implied enterprise value of $144 million.
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The proposed transaction aligns with EOS’ transformation strategy and is expected to allow the company to focus on commercialising its substantial intellectual property and growing its core product offerings in the areas of remote weapon systems, high-energy laser weapons and space control.
“EOS sees a compelling growth opportunity in the counter-drone market for both remote weapon systems and high-energy laser weapons,” according to a company statement.
“The sale of EM Solutions is expected to provide EOS with the funding flexibility to more fully pursue these growth opportunities.
“EM Solutions has operated predominantly as a standalone business since being acquired in 2019 to support the SpaceLink operations, which EOS has since exited. Whilst attractive, growing and profitable business, we believe its future success and growth prospects will be more fully realised under Cohort’s ownership.
“As part of Cohort, EM Solutions will benefit from being more strategically aligned and from an increased market presence in the SATCOM market segment. Under ownership of the Cohort group, EM Solutions will continue to be proudly [Australia-based] and remain committed to meeting its obligations with existing customers in Australia and overseas.”
