Australia's Electro Optic Systems wins $124 million anti-drone deal

Electro Optic Systems Holdings

Yesterday 05:39

June 19 (Reuters) - Australia's Electro Optic Systems EOS.AX said on Friday that it has secured a $124 million order to supply its anti-drone remote weapon system and entered a joint venture agreement to manufacture counter-drone and laser weapons, propelling its shares to their best session in six months. 
Here are the details: 
The defence tech manufacturer said that it will supply its Slinger anti-drone remote weapon system to UAE-based defence equipment manufacturer Generation 5.
Electro Optic added that it also entered a binding and conditional joint venture agreement with Generation 5 for the manufacturing and distribution of 200-300kW high-energy laser weapon and existing anti-drone weapons.
The company's shares surged as much as 20.5% in their best session since mid-December and hit more than a two-week high.
The incorporated joint venture is expected to have an equal equity contribution from both Electro Optic Systems and Generation 5, the former added.
The joint venture deal will also allow EOS to potentially secure an increase in the order book through development and production orders for HELW products. It will start contributing to the Canberra-based firm's earnings from 2027 or 2028 onwards, Electro Optic Systems said.


 (Reporting by Keshav Singh Chundawat in Bengaluru)
 ((Keshav.SinghChundawat@thomsonreuters.com;))