Electro Optic Systems shares surge on fresh MARSS Group contracts
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The news: Shares in Electro Optic Systems (EOS) jumped at the open after the defence technology company’s acquisition target MARSS Group secured new orders worth a combined $165 million this month.
The numbers: EOS shares were up 8.5% to $9.19 at 10.50am AEST, taking 12-month gains to around 630%.
Counterdrone system developer MARSS Group recorded new orders from an existing customer in the Middle East, taking its total order book to $217 million.
Assuming the acquisition of MARSS completes, EOS’ existing $509 million order book would grow to $726 million.
Due to the new contracted orders, a strengthening outlook and “increased industry interest” in MARSS, the two companies have agreed to amend the takeover terms, including an increase to the maximum earnout cap from €100 million ($226 million) to €140 million.
EOS said it has drawn $70 million from its secured loan facility provided by Soul Patts. Of that, $50 million will be used to fund the upfront cash consideration, due for payment on Friday.
The source: ASX
