Acquisition of Abacus EW Cons
17 May 2010 AIM: CHRT
PRESS RELEASE
COHORT PLC ("Cohort")
Acquisition of Abacus EW Consultancy Ltd ("Abacus EW")
Cohort, the independent technology group, today announces that MASS Consultants Ltd ("MASS"), its wholly-owned subsidiary, has acquired the entire share capital of Abacus EW Consultancy Limited. There will be an initial cash consideration of £1.0m payable on completion and a further performance-related cash consideration of up to £1.8m over three years. The acquisition will be funded from Cohort's internal cash resources and is expected to be earnings enhancing in the current year before amortisation of acquired intangible assets.
Abacus EW
Based in Wellingore near Lincoln, Abacus EW provides consultancy services and training in communications and radar electronic warfare (EW) to UK and overseas customers, primarily in the land and maritime environments. The training offered is operationally-focused and uses state-of-the-art simulation tools. The company has also recently launched an innovative EW training & planning software tool.
Acquisition Rationale
Cohort's immediate focus is on improving operational performance. However, we continue to look at any opportunities for bolt-in acquisitions which strengthen our existing businesses. Abacus will be integrated within MASS's Lincoln-based Electronic Warfare Operational Support Division. Paul Burrows, founder of Abacus EW, will remain with MASS to continue to drive business development in this area. Benefits of the acquisition include:
· extending MASS's existing EW product and training offering into the land and maritime environments;
· adding new overseas defence customers; and
· providing established business management infrastructure to accelerate Abacus EW's growth plans
Commenting on the acquisition, Andrew Thomis, Chief Executive of Cohort plc, said:
"This small but important transaction adds depth, breadth and new customers to an already successful offering from our MASS business in the export EW market. This very much reinforces our niche capability in this field and I welcome Paul Burrows and his team into Cohort."
Ends
For further information, please contact
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Cohort plc
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Andrew Thomis, Chief Executive Simon Walther, Finance Director |
+44 (0)14 9184 5630 |
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Investec |
Keith Anderson, Daniel Adams |
+44 (0)20 7597 5970 |
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Hogarth |
Julian Walker, Vicky Watkins |
+44 (0)20 7357 9477 |
Notes to Editors on following page
NOTES TO EDITORS
Cohort plc (www.cohortplc.com)
Cohort is an independent technology group working primarily for defence (air, land and sea), wider government and industry clients, through three market-facing subsidiary companies:
· MASS (www.mass.co.uk) - a specialist systems house with considerable experience in the defence market and a focus on Information Systems. Based in Cambridgeshire, MASS was acquired by Cohort in August 2006;
· SCS (www.scs-ltd.co.uk) - an independent defence consultancy, combining technical expertise with practical experience and domain knowledge. Owned by Cohort since flotation in March 2006;
· SEA (www.sea.co.uk) - an advanced surveillance systems and software house with hardware development capability operating in the defence, space, transport and offshore market sectors. Acquired by Cohort in October 2007.
Cohort (AIM: CHRT) was admitted to London's Alternative Investment Market in March 2006. It has its headquarters in Oxfordshire and, through its operating companies, employs in total around 500 core staff there and at bases in Bristol, Cambridgeshire, Oxfordshire, Lincolnshire and Somerset.
This information is provided by RNS
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