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Electro Optic Systems (ASX:EOS) - CEO, Fred Bart - The Market Herald
CEO, Fred Bart
Source: Electro Optic Systems
  • Electro Optic System (EOS) is in negotiations with the Commonwealth to deliver 251 Remote Weapons Stations
  • If an acquisition agreement is reached, the stations will be placed on the Army’s Bushmaster and Hawkei protected mobility vehicles
  • The weapons platforms allow a gunner to fire a remotely controlled weapon from a protected joint inside the armoured vehicle
  • The deal is part of the Government’s $270 billion 2020 Force Structure Plan program, aimed at improving and expanding the capabilities of the Australian Defence Force
  • On the back of the news, Electro Optic Systems shares have spiked 22 per cent, trading for just under $6.50 per share

Electro Optic System (EOS) is in negotiations with the Commonwealth to deliver 251 Remote Weapons Stations.

The Sydney-based technology firm operates in three distinct spheres; defence, space and communications.

If an acquisition agreement is reached, the Remote Weapons Stations, along with their related material, will be installed in the Army’s Bushmaster and Hawkei protected mobility vehicles.

These platforms allow a gunner to operate a weapons system from a protected position inside the armoured vehicle.

These remotely operated turrets and weapons are the key product offerings in Electro’s arsenal.

Speaking from Canberra, Prime Minister Scott Morrison said the Federal Government was committed to ensuring Australian Defence Force personnel have the tools they need to protect themselves while keeping Australians safe.

“At the same time, we must have a robust and resilient defence industry that maximises opportunities for small business and supports Australian jobs and local investment,” he said. 

Electro Optic Systems says the execution of a more formal agreement is "subject to negotiations,” with the company committing to providing more details once talks have ended and contracts are completed. 

The company has also stated that this deal will not interfere with any existing export orders, as those arrangements have been deferred by customers for up to 12 months.

The company maintains those orders will stay in its backlog and will be filed as soon as possible.

The acquisition would form part of the Government’s massive $270 billion defence program — the 2020 Force Structure Plan — a strategy to upgrade and expand the capabilities of the Australian Defence Force.

The Minister for Defence Industry, Melissa Price, said the investment would provide job stability for over 200 of Electro Optic Systems' workforce directly involved in engineering and support.

“This investment not only secures local jobs but it also provides certainty for over 100 supply chain businesses across Australia," she explainedd.

“More than 80 per cent of the parts that Electro Optic Systems use for these weapons are sourced through the Australian supply chain and that’s good for jobs and small businesses,” Melissa commented.

On the back of the news, Electro Optic Systems shares have spiked 22 per cent, trading for $6.49 per share at 1:45 pm AEST.


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