Electro Optic Systems has moved to expand its counter-drone capabilities with the acquisition of a UK-based interceptor business from MARSS Group, in a deal valued at 5.5 million (about A$10 million). The investment strengthens EOS’s position in the rapidly evolving counter-drone market, where interceptor drones are emerging as a key technology for defending against fast, agile and increasingly intelligent aerial threats.
The interceptor system EOS is acquiring is designed to pursue and defeat hostile drones using onboard imaging, an infrared seeker and AI-driven guidance. It can operate autonomously, reach speeds of up to 290 km/h and engage targets at ranges of up to 5 kilometres — well beyond the reach of EOS’s current remote weapon systems. The company says the technology offers several strategic advantages over traditional effectors, including lower cost, low collateral damage and improved effectiveness against drones that are resistant to jamming.
Interceptor drones are already being trialled in Ukraine and other conflict zones as militaries look for scalable and cost-effective defence options. EOS expects the newly acquired system to undergo another 12 to 24 months of development before full commercial release. The company anticipates investing up to an additional A$10 million in the next three years, with the possibility of customer-funded development along the way.
The interceptor is designed to integrate with a range of sensors and command-and-control systems as part of a layered counter-drone architecture. A variant can also be side-loaded onto EOS’s established Remote Weapon Systems, expanding its effector portfolio alongside high-energy laser weapons and traditional kinetic options.
EOS says the acquisition aligns with its strategy to lead the counter-drone market through a mix of kinetic, directed-energy and AI-enabled capabilities. The move also gives EOS an engineering foothold in the United Kingdom, an AUKUS partner nation, and broadens potential reach into both defence and civil markets seeking low-collateral response options.
The transaction will be funded from existing cash reserves and is not expected to materially impact near-term financial results. Completion remains subject to standard approvals and conditions. EOS says further updates will be provided in line with disclosure requirements.
