Acquisition

RNS Number : 6551V

Cohort PLC

01 February 2017

 

1 February 2017

Cohort plc

("Cohort")

Acquisition

Cohort completes acquisition of 100% of Marlborough Communications Ltd (MCL)

Cohort, the independent technology group, is pleased to announce that it has acquired the minority (49.999%) holding in its subsidiary MCL for a cash consideration of £5.1m in line with the arrangements stated at the time of its acquisition in July 2014.  This takes Cohort's holding in MCL to 100%, and the total consideration, including deferred consideration paid to date, to £12.1m. The consideration has been paid out of Cohort's existing financial resources. A further payment of approximately £2.0 million is expected to be made on or before 31 July 2017 reflecting a further earn out linked to MCL's current order book and the minority holding's share of the surplus cash in MCL.  The impact of this acquisition is expected to be earnings enhancing in the remainder of the financial year ending 30 April 2017.

MCL is a standalone member of the Group, alongside MASS, SEA and EID, and provides specialist communications and surveillance technology to defence and security markets in the UK and overseas.  MCL's existing management team remains in place following the transaction. 

Andy Thomis, Chief Executive of Cohort, said:

"We are pleased to have completed the acquisition of MCL. Since joining the Group in 2014, they have demonstrated the quality of their specialist skills and the demand for their products, particularly in the areas of tactical hearing protection and airborne communications.  With a good pipeline of opportunities in the remainder of our financial year, we are confident that the transaction will be earnings enhancing."

This announcement contains inside information.

Ends

For further information, please contact:

Cohort plc	0118 909 0390
Andy Thomis, Chief Executive
Simon Walther, Finance Director
Investec Bank Plc	020 7597 5970
Keith Anderson / Daniel Adams
MHP Communications Limited	020 3128 8100
Reg Hoare / Jamie Ricketts / Ollie Hoare

NOTES TO EDITORS

Cohort is the parent company of four innovative, agile and responsive businesses based in the UK and Portugal, providing a wide range of services and products for domestic and export customers in defence and related markets.

MASS is a specialist defence and technology business, focused on electronic warfare, information systems and cyber security.

www.mass.co.uk

MCL is an expert in the sourcing, design, integration and support of communications and surveillance technology for the defence and security markets.

www.marlboroughcomms.com

SEA is an advanced electronic systems and software house operating in the defence, transport and offshore energy markets.

www.sea.co.uk

EID designs and manufactures advanced communications systems for the defence and security markets.

www.eid.pt

 

END

 

 

ACQUAUBRBUAAOAR