21st Nov 2024 12:30
(Alliance News) - Cohort PLC on Tuesday said it has raised GBP41 million from an offering of shares to institutional and retail investors, with the money to be used toward a defence-sector acquisition in Australia.
Reading, Berkshire-based Cohort owns Communications & Intelligence and Sensors & Effectors businesses in the UK, Germany and Portugal.
It has agreed to buy EM Solutions Pty Ltd from Sydney-listed Electro Optic Systems Holdings Ltd for AUD144.0 million, about GBP75 million.
Cash for the deal will come from Cohort's existing cash pile and debt facility, as well as the fresh equity. Cohort said it raised GBP40 million gross from the placing with institutional investors of 4.6 million new shares at 875 pence each by Investec Bank PLC. Another GBP1 million was raised from a retail offer of 114,285 shares at the same price.
Cohort shares were up 5.3% to 962.22 pence midday Thursday in London.
EM Solutions is a developer of microwave and on-the-move radio and satellite technology. It provides broadband radio transceivers and other RF subsystems such as low-noise receivers and solid-state high-power transmitters for defence and commercial customers.
EM Solutions' Satcom terminals provide naval communications for the Royal Australian Navy, Royal Norwegian Navy, and Dutch Ministry of Defence. Other export markets are the US, Japan and Portugal. Cohort said its EID business has worked closely with EM Solutions in Portugal.
EM Solutions recorded earnings before interest and tax of AUD11.5 million on revenue of AUD43.1 million in 2023. It currently has an order book worth AUD175.4 million, about GBP91 million, bringing Cohort's total pro forma order book to over GBP650 million.
By Tom Waite, Alliance News editor
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