Electro Optic Systems Holdings Limited (ASX:EOS), a company operating in Defence Systems and Space Systems, today announced revised agreement terms for its acquisition of the MARSS group business. EOS’s Defence Systems division specialises in technology for weapon systems optimisation, Intelligence, Surveillance and Reconnaissance (ISR), and C4 systems for land warfare. MARSS, a turnkey provider of counter-drone systems, including custom design of high-performance systems incorporating third-party OEM equipment, has seen substantial new order intake, influencing the updated transaction.
The company confirmed it has drawn A$70 million from its secured term loan facility from Washington H. Soul Pattinson, with A$50 million allocated to fund the upfront cash consideration of US$36 million for MARSS. This payment is being made today, with acquisition completion expected in the coming days. Due to additional contracted orders, a strengthening outlook for MARSS, and increased industry interest, EOS and the vendors have amended the transaction terms. This includes increasing the maximum earnout cap for MARSS to €140 million, up from the previously announced €100 million.
MARSS recently secured new orders totalling €102 million (approximately A$165 million) from an existing Middle Eastern military customer in May 2026. This significant contract expands MARSS’s existing installations to deliver a country-wide drone detection and mitigation capability. Following these new wins, MARSS’s order book now stands at €135 million (approximately A$217 million). The battle-proven performance of MARSS’s NiDAR system in active conflict zones has led to accelerated customer enquiry. Subject to completion, the addition of MARSS’s order book would illustratively increase EOS’s total order book to A$726 million.
