A newcomer to the ASX has struck a deal to have its communication technology integrated into military surveillance drones.

Mobilicom (ASX:MOB) is an Israeli technology firm that makes secure communication systems. It listed on the ASX in May after raising $7.5 million through an initial public offering at 20c per share.

At noon Wednesday, its shares were trading at 15c.

The company announced in June that its new “bi-directional data link” system SkyHopper PRO had been approved for use in the US by the Federal Communications Commission.

And late on Tuesday, it said that same technology would start to be used by a company called iSTAR UAV which makes surveillance drones for the military and homeland security markets.

“By integrating the features of SkyHopper, the drone system’s ability to undertake security operations is further strengthened,” Mobilicom said.

“SkyHopper PRO is equipped with Mobilicom’s proprietary encryption mechanism, with its security capabilities commended and approved by the Israel Defense Forces.”

The company expects the deal to be worth about $3 million over several years, based on iSTAR sales forecasts of between 1000 and 2000 drones.