Cohort to acquire SEA
11/10/2007
Cohort plc, a leading independent defence technical service provider and owner of Systems Consultants Services Ltd and MASS Consultants Ltd, has announced that it has conditionally agreed to acquire SEA Ltd, a UK-based independent systems engineering and software company, for an initial consideration of £20.7m to be satisfied in shares and cash with further performance-related deferred consideration in cash of up to £4.7m.
The deal will mark the company's second acquisition since Cohort's March 2006 listing on AIM, in line with stated growth strategy.
SEA's core capability is the development of innovative electronic surveillance systems for the defence, space, transport and offshore markets. SEA's strong position in naval defence markets complements MASS's position in air and SCS in land
The acquisition creates a platform to bid for larger contracts and enhance the group's ability to cross-sell its services into different areas of defence. It is expected to be earnings enhancing in the current year excluding the impact of the amortisation of acquired intangible assets.
Ian Dale-Staples, CEO of SEA, is to join the board of Cohort on completion of the acquisition and will hold an approximate 5% shareholding in Cohort
Commenting on the Acquisition, Nick Prest CBE, Chairman of Cohort plc said: "SEA substantially increases the scale of the group, develops our capabilities into new related areas and is consistent with Cohort's stated strategy of building an independent group supplying technical services primarily to the defence market. SEA is an excellent fit with our existing businesses and will, I believe, offer significant opportunities for continued growth in the future.
We are pleased to welcome Ian Dale-Staples to the Cohort Board and look forward to working with him in the further development of SEA and the Cohort Group"
Ian Dale-Staples, CEO of SEA said: "Joining Cohort, with its larger size and complementary capabilities, will provide additional growth opportunities for SEA and its employees. I am personally delighted to be joining the Cohort Board and look forward to contributing to the development of the enlarged Cohort business."
