DroneShield & Terma agree counter-drone collaboration

DroneShield and Terma have signed a memorandum of understanding on counter-drone systems, setting out a strategic collaboration focused on layered counter-UAS capabilities.

The agreement creates a framework to test interoperability between their systems and move them towards operational use. It also covers coordinated market activity, with particular focus on customers in Denmark, the Middle East and Asia-Pacific.

ASX-listed DroneShield develops artificial intelligence-based counter-drone technology for military, government, law enforcement, critical infrastructure and airport customers. Denmark-based Terma develops products for the aerospace, defence and security sectors and employs more than 2,200 people worldwide.

The collaboration combines DroneShield's counter-UAS and command-and-control software with Terma's air defence and electronic warfare systems. The aim is to offer operators a modular approach that can be adapted to different environments and threat profiles.

Layered systems

Demand for counter-UAS systems has risen as armed forces and security agencies respond to the spread of drones and autonomous systems across conflict zones and critical sites. Defence buyers are increasingly seeking layered set-ups that combine sensors, electronic warfare tools and software to improve detection, classification and response.

Under the arrangement, artificial intelligence-enabled sensor fusion will be used to improve situational awareness and increase the accuracy of identifying unmanned systems. That could support faster operational decisions in complex environments.

The agreement is also intended to give both companies a route into existing long-term air defence frameworks used by customers seeking to strengthen defences against evolving threats. The work is positioned as an addition to established systems rather than a replacement.

Louis Gamarra, chief commercial officer at DroneShield, outlined the company's view of the operational need behind the partnership.

"Counter-UAS operations increasingly demand interoperable, multi-sensor solutions that can be deployed rapidly and scaled across diverse operational environments. Partnering with Terma allows DroneShield to combine our battle-proven counter-UAS and command-and-control capabilities with Terma's advanced air defence technologies, creating a compelling pathway for customers seeking to enhance layered defence outcomes," Gamarra said.

Regional focus

The companies identified Denmark, the Middle East and Asia-Pacific as key markets for the collaboration. Those regions have seen sustained defence spending on air defence, surveillance and electronic warfare, including growing attention to low-cost aerial threats that can be deployed in large numbers.

For DroneShield, the collaboration provides a link to a European defence manufacturer with established military procurement relationships. For Terma, it adds a counter-UAS option for customers seeking to supplement current systems without overhauling broader air defence architecture.

Steen Trier, vice president of global sales at Terma, said the collaboration was aimed at customers operating in difficult conditions.

"Terma works closely with defence customers operating in complex and demanding environments. This collaboration with DroneShield enables us to complement existing capabilities with additional counter-UxS solutions, supporting customers as operational requirements continue to evolve," Trier said.

The memorandum does not set out financial terms. It does establish a formal basis for the two companies to validate joint use of their systems and pursue business together as counter-UAS requirements expand across defence and security markets.