Electro Optic Systems Holdings (ASX:EOS) signed a teaming agreement with KNDS France to collaborate on opportunities in selected markets to jointly pursue new business opportunities and advance cooperation on remote-controlled weapon stations, the company said in a statement Friday.

The agreement establishes a framework for cooperation across marketing and product development, the company said. It also supports the sharing of relevant intellectual property, technical know-how, and research outcomes.

The cooperation also enables the potential co-development of new products, including the integration of ITAR free advanced weapon systems, technologies, and integrated solutions aligned with the companies' respective areas of expertise.

Electro Optic Systems Holdings' shares fell nearly 3% in recent trading on Friday.