Cohort (AIM:CHRT) – nice looking acquisition offers immediate boost to earnings
The independent technology group operating in defence and related markets has announced the acquisition of Empresa de Investigação e Desenvolvimento de Electrónica, S.A., (EID), a Portugal based supplier of advanced electronics, communications and command and control products and systems for the global defence market. That’s quite a name!
The gross cash consideration is €19m (£13.3m) and will be funded from Cohort’s existing cash resources augmented by a new syndicated debt facility. At the time of completion EID is expected to hold at least €3m of cash and no financial debt, giving a net acquisition price of €16m on a cash-free, debt-free basis. EID is a hi-tech company with more than 30 years’ experience in the design, manufacture and support of advanced, high performance command, control and communications equipment for the global defence and security market. Customers for its naval communications systems include the Royal Navy and other NATO…