5th Aug 2015 08:05
LONDON (Alliance News) - Cohort said on Wednesday it has agreed terms to acquire Empresa de Investigação e Desenvolvimento de Electrónica SA (EID), a Portugal-based supplier of advanced electronics, communications and command and control systems for the global defence market.
Technology group Cohort will pay EUR19 million cash for 99.98% of the share capital of EID. The London-listed company expects EID to hold at least EUR3.0 million of cash and no financial debt at the time of purchase, meaning the net acquisition price is GBP16.0 million.
Cohort said it expects to fund the transaction from a new syndicated debt facility with a total value of up to GBP25 million and is in advanced discussions with Royal Bank of Scotland, Lloyds and Barclays. Cohort also will draw upon existing cash resources. If the new facility is not in place at the time of completion, Cohort said it will fund the transaction from its existing cash resources and its existing bank facility with RBS.
However, completion of the acquisition is conditional on approval by the Portuguese ministries of finance and defence, and on the fulfilment of certain other unnamed conditions.
"The acquisition of EID is an important step for Cohort. It adds to the group a highly capable provider of communications systems that has demonstrated the quality of its products through export success in a number of important territories," said Cohort Chief Executive Andrew Thomis.
Shares in Cohort trade 4.2% up at 348.00 pence on the news early Wednesday.
By Preten Patel; [email protected]
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