Electro Optic Systems today announces it has entered into a binding agreement to divest its Naval Satellite Communications subsidiary, EM Solutions to Cohort plc for an implied enterprise value of $144 million.

The Proposed Transaction aligns with EOS’ transformation strategy 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. 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.

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 Australian based and remain committed to meeting its obligations with existing customers in Australia and overseas.