Electro Optic Systems Holdings (ASX:EOS) said its EOS Defense Systems unit agreed with Milrem Robotics to jointly pursue new business opportunities and develop and execute marketing initiatives, according to a Wednesday statement by the company.

The partnership also includes the integration of advanced weapon systems, sensors, and effectors onto Milrem Robotics' unmanned ground vehicles, the company said. It will initially focus on selected markets in the Middle East and North Africa, the Asia-Pacific region, and Europe.

Shares of the company fell past 4% in recent Wednesday trade.