In a statement to the ASX, EOS said the “necessary conditions have been met”, including obtaining counterparty consents, waivers and amendments for material contracts.
It comes after Space Connect reported in November how the deal would see subsidiary EM sold to Cohort for $144 million despite the company being purchased for just $25 million in 2019.
At the time, EOS said it would enable it to focus on its core business of “remote weapon systems, high energy laser weapons and space control” and leave it debt-free.
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It significantly followed EOS previously shutting its separate SATCOM spin-off SpaceLink in 2022, which EM was purchased to support.
“EOS sees a compelling growth opportunity in the counter-drone market for both remote weapon systems and high energy laser weapons,” said the company in November.
“The sale of EM Solutions is expected to provide EOS with the funding flexibility to more fully pursue these growth opportunities.
“EM Solutions has operated predominantly as a standalone business since being acquired in 2019 to support the SpaceLink operations, which EOS has since exited.
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“While attractive, growing and profitable business, we believe its future success and growth prospects will be more fully realised under Cohort’s ownership.”
EOS said it would also enable EM to become “more strategically aligned” and benefit from an increased market presence in the SATCOM sector.
“Under the ownership of the Cohort group, EM Solutions will continue to be proudly Australian-based and remain committed to meeting its obligations with existing customers in Australia and overseas,” it said.
EOS is best known in the space sector for using high-energy lasers to identify and track objects in space. A member of the Smartsat CRC collaboration, it has held a number of key space contracts in Australia and the US.
EOS originally acquired EM to support SpaceLink, which had planned to launch an initial constellation of medium earth orbit satellites in early 2022.
A struggle to find investors, though, led to the venture being terminated in November 2022, with EOS again saying it would redirect funds towards its core offerings.
Adam Thorn
Adam is a journalist who has worked for more than 40 prestigious media brands in the UK and Australia. Since 2005, his varied career has included stints as a reporter, copy editor, feature writer and editor for publications as diverse as Fleet Street newspaper The Sunday Times, fashion bible Jones, media and marketing website Mumbrella as well as lifestyle magazines such as GQ, Woman’s Weekly, Men’s Health and Loaded. He joined Momentum Media in early 2020 and currently writes for Australian Aviation and World of Aviation.
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