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Electro Optic Systems Holdings Limited (ASX:EOS) is pleased to announce that its US subsidiary EOS Defense Systems, Inc. has acquired the remote weapon systems business of Recon Optical, Inc. (ROI). This acquisition consolidates under EOS a technology base and product range unsurpassed in the rapidly-expanding remote weapon systems sector.
Safety for the gunner
Remote weapon systems allow ballistic weapons, such as machine guns, to be operated remotely from the weapon, providing a protected environment for the gunner. These systems typically comprise a weapon gimbal for directing the weapon and a wide range of sensors, software and weapon control systems to allow the weapon to be safely and effectively operated.
Since 1994 EOS has been on the forefront of the development of remote weapon systems. EOS and ROI joined forces in 1999 for the development of CROWS 1 remote weapon systems for the US army. ROI contributed weapon system gimbals while EOS provided sensors, electronics, operator interface, software, and weapon control and aiming systems.
Implications for EOS
The EOS remote weapon system product range includes R-600, R-400 and R-200 products that range from over 600lb to less than 200lb in weight to suit various vehicles and provide a wide range of performance. Until now only the R-600 was comprised entirely of EOS-owned or controlled technology. The acquisition consolidates all the R-400 and R-200 technologies directly within EOS and its subsidiaries.
Direct control of the technology and production of all its products gives EOS a competitive advantage through:
- Larger production volume, improving internal efficiency and the supply chain
- Flexibility for allocating offsets within export markets to enable local participation in remote weapon system production and support
- Product improvements in one product which can now be more readily moved to other products
- Seamless movement for all customers from one product in the range to another
Upon completion of the acquisition this week, EOS will engage the ROI staff and occupy the ROI premises in Barrington, IL, which were purpose-built for the production of gimbals for remote weapon systems. This represents a substantial increase in EOS’ production capability.
The acquisition also improves EOS’ ability to provide total support for its entire product range, since EOS is also acquiring the physical ROI depot and spare parts operations for remote weapon systems, including CROWS support operations in Iraq.
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