By Robert Wall

Elbit Systems Ltd. (ESLT.TV) will supply the Swiss army with new surveillance drones, beating rival Israel Aerospace Industries to win the order.

Elbit will provide the Hermes 900HFE unmanned aircraft, the Swiss Defense Ministry said Thursday in a statement. The Swiss government estimates the purchase will cost 250 million Swiss francs ($280 million).

Switzerland narrowed the field of competitors to Elbit and IAI, which offered its Super Heron drone, in 2012. Elbit achieved the highest score across the evaluation criteria, the Swiss government said.

The Hermes 900, to be designated the ADS 15 when it enters service in Switzerland, will replace the ADS 95 Ranger toward the end of the decade. The Ranger has reached the end of its useful life after entering service in 2001, the government said.

The new drone, which will be used only for surveillance purposes and not be armed, will have greater endurance than the Ranger.

The government will probably submit the funding request to parliament as part of its 2015 defense equipment plan, it said.

Write to Robert Wall at robert.wall@wsj.com

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