Cohort PLC Acquisition (6551V)

TIDMCHRT

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 GBP5.1m 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 GBP12.1m. The consideration has been paid out of Cohort's existing financial resources. A further payment of approximately GBP2.0 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

This information is provided by RNS

The company news service from the London Stock Exchange

END

ACQUAUBRBUAAOAR

(END) Dow Jones Newswires

February 01, 2017 02:00 ET (07:00 GMT)