EOS manufacturing strategy expands with planned acquisition of MARSS counter-drone systems provider

Electro Optic Systems Holdings Limited says it is seeking to strengthen its manufacturing and systems integration capabilities after announcing an agreement to acquire the MARSS group business, a Europe-based provider of counter-drone command and control technology, according to a company statement.

In a release to the ASX, EOS said the acquisition is intended to support its shift from manufacturing individual sensors and effectors to producing integrated counter-drone systems that combine hardware, software and artificial intelligence. 

MARSS develops the NiDAR command and control platform, which EOS described as enabling AI-assisted decision-making and coordination of multiple sensors and effectors to counter drone threats.

EOS said the transaction, structured as an asset acquisition, includes MARSS’ technology, intellectual property, customer contracts and personnel. 

The company stated that it plans to embed the NiDAR platform into its existing manufactured remote weapon systems, with the aim of offering end-to-end counter-drone solutions for military, homeland security and civil infrastructure applications.

Under the terms outlined by EOS, the deal involves an upfront cash payment of US$36 million, with additional earn-out payments linked to future MARSS contract orders, capped at €100 million. 

EOS said the upfront consideration is expected to be funded primarily from existing cash reserves and that the acquisition is anticipated to be broadly neutral for earnings and operating cash flow in 2026.

EOS noted that completion is expected during 2026, subject to regulatory, customer and other approvals, and said there is no guarantee the transaction will be completed. 

The company added that it views the acquisition as part of its broader manufacturing and growth strategy, while acknowledging that future performance will depend on market conditions and contract outcomes.