6th Apr 2009 07:00
6 April 2009
Ref: 0278
COBHAM REACHES AGREEMENT TO ACQUIRE US NATIONAL SECURITY COMPANY FOR US$36.25 MILLION
Cobham plc ('Cobham') is pleased to announce that it has reached agreement to acquire the share capital of Argotek, Inc. ('Argotek'), a privately owned company based in the USA, for a consideration of US$36.25 million, comprising US$26.25 million payable in cash on completion on a debt and cash free basis, and a seller's note of US$10 million which will be payable in instalments on the first, second and third anniversary of completion. The acquisition of Argotek is expected to complete in the first half of the year, subject to approval from the Committee on Foreign Investment in the United States.
Argotek provides high-end information assurance services to the US intelligence community. It has a skilled workforce of 70 professional information assurance experts, all of whom possess US security clearances and who are based at customer locations. It is an excellent fit within Cobham Analytic Solutions' (formerly SPARTA's) existing National Security Systems Sector, adding technical depth and expertise and expanded customer relationships. Its core competences will be in demand for critical programmes, including the Comprehensive National Cyber Initiative, a major government-wide effort to strengthen US defences against electronic attack.
Allan Cook, Cobham Chief Executive, said:
"The acquisition of Argotek adds further depth to our information assurance capabilities and builds on the successful acquisition of SPARTA in 2008. Argotek will strengthen our customer relationships in the growing US intelligence market, where cyber security is of critical national importance."
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ENQUIRIES
Cobham plc
Allan Cook, Chief Executive +44 (0)1202 882020
Warren Tucker, Chief Financial Officer +44 (0)1202 882020
Julian Hellebrand, Group Director of Communications +44 (0)1202 857651
Susan Ellis, Senior Communications Adviser +44 (0)7836 522722
NOTES
1. Cobham's products and services have been at the heart of sophisticated military and civil systems for more than 70 years, keeping people safe, improving communications and enhancing the capability of land, sea, air and space platforms. The Company has four divisions employing more than 12,000 people on five continents, with customers and partners in over 100 countries and annual revenues of more than £1bn.
2. Cobham Analytic Solutions (formerly SPARTA) provides world-class technical products and services to the defence, intelligence, and homeland security sectors of the federal government. Since its inception in 1979, the business has successfully applied outstanding intellectual talent and expertise to help solve major national defence and intelligence challenges. Focusing on problems that require critical technical analysis, innovative engineering solutions, and expert acquisition support, the business has established a reputation for integrity, technical excellence, and customer satisfaction.
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