Loss maker under EOS? It was the most profitable part of the business. The reason cohort wants it is because of AUKUS. EM Solutions produces world leading on the move SATCOM primarily for Naval platforms. The products are certainly better than anything the Royal Navy has but the UK being the UK its has to buy local for political reasons. However, this also sorts a UK challenge of how to dress up AUKUS as an exchange of industrial capacity (which it was never going to be) by buying some Australian kit in exchange for Australia buying billions of dollars worth of UK ships and submarines. For Cohort they get to put lots of EMS satcom terminals on UK and Aust warships along with the other sub-systems they already have on the UK Type 26 so the price is worth it.
From an EOS perspective it gets them out of debt and cash in the bank for a really good price that due to US, EU and UK buying policies they could never realise themselves.
If EOS now focuses hard on the counter drone market in the Middle East and the US plus the SDA global opportunities it should do really well. Europe remains a very tough market because they would usually rather pay double for ordinary gear to have things done locally than look for better stuff overseas.
EOS Price at posting:
$1.25 Sentiment: None Disclosure: Held
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