Qioptiq in St Asaph, North Wales, will maintain the equipment, including night-vision goggles and day and night weapon sights, over the next six years.
The contract covers equipment used right across the UK armed forces, from frontline infantry and Royal Marine soldiers, to military.
Awarding the contract to the company at the IDEX trade show in Abu Dhabi, Harriett Baldwin, minister for defence procurement, said: “This deal will provide our troops with the equipment they need to stay safe, while also delivering £47 million of savings.”
Work under the new Surveillance Target and Acquisition Support (STAS) contract will create eight new positions at the company, which employs around 560 at its St Asaph and Bodelwyddan sites.
Alun Cairns, secretary of state for Wales, said: “This massive contract for Qioptiq underlines Wales’ reputation as a world leader in the defence technology sector, coming hot on the heels of the choice of DECA Sealand as the global repair hub for the F35 aircraft.
“This enormous vote on confidence in the Welsh economy demonstrates that we offer the highly skilled workforce and facilities that investors need. It is also clearly great news for employment in the region.”