Electro Optic Systems Holdings Limited (“EOS” or the “Company”) (ASX: EOS) today announces that it has entered into an agreement to acquire the MARSS group business (“MARSS”). MARSS is a Europe-based provider of command and control (“C2”) systems, which are critical for effectively countering drones.
MARSS’ proprietary C2 technology, NiDAR, provides advanced AI-enabled decision making and sensor-effector orchestration to rapidly counter asymmetric drone threats.
By combining its best-in-class effector and sensor capabilities with MARSS’ C2 technology, EOS is transforming from a component supplier to an integrated counter-drone systems provider, with strong software and AI capabilities.
Highlights
- Established in 2006, MARSS is a defence and security technology provider focused on developing and marketing sensor-fusion technology and AI-enabled C2 systems primarily for counter-drone use
- The acquisition includes MARSS’ NiDAR C2 technology, sensor-fusion and AI software platform and hardware offering, along with associated customer contracts, intellectual property and personnel
- Creates an integrated, end-to-end solution for countering drones i.e. Detect → Identify → Decide → Defeat – allowing EOS to act as a true counter-drone system provider and to compete for larger, higher-value programs as a Prime Contractor. This includes the delivery and operation of turn-key solutions for the protection of critical infrastructure in the military, homeland security and civil domain, such as airports or power plants
- Expands EOS’ geographic footprint and broadens its end market presence, with scope to leverage MARSS’ defence, homeland security and civil relationships
- Significantly strengthens EOS’ in-house AI/software development capability
- EOS plans to embed the AI-enabled NiDAR technology into its existing remote weapon system product range. It is envisaged that this will create the ability for the systems to form a mesh-network, providing the client’s vehicle fleet hemispherical coverage against drone attacks – a new feature in today’s market
- Transaction structured as an asset acquisition, with consideration consisting of an upfront cash payment and an earnout, being additional contingent consideration tied to new MARSS sales:
- Upfront cash payment of US$36m (~A$54m); plus
- Potential earnout amount of up to €20m for each €100m (or part thereof) of certain new MARSS third party contract orders (up to €500m) secured prior to the end of the earnout period. The earnout payment is capped at €100m (~A$174m), subject to adjustments and is payable in a combination of cash (capped at €20m) and EOS shares. More details are below (in full ASX announcement).
- Acquisition cash consideration, primarily intended to be funded from existing cash reserves (~$107m at 31 Dec 2025), see further details below (in full ASX announcement).
- Acquisition anticipated to be broadly neutral for earnings and operating cashflow in 2026.
- Completion expected in 2026, subject to customer, regulator and other approvals
Read the full ASX announcement here