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Acquisition

20th Aug 2008 07:00

RNS Number : 6794B
Cobham PLC
20 August 2008
 



20 August 2008

COBHAM REACHES AGREEMENT TO ACQUIRE US INTELLIGENCE AND SURVEILLANCE COMPANY FOR $26 MILLION

Cobham plc ('Cobham') is pleased to announce that it has reached agreement to acquire the trade and net assets of GMS Inc. ('GMS') from The Allied Defense Group, Inc. for a cash consideration of $26 million on a debt and cash free basis, payable on completion. The acquisition of GMS is expected to complete before the end of 2008 subject to customary closing conditions and approval from the Committee on Foreign Investment in the United States. GMS, which employs 50 people, is based in Carlsbad, California and will become part of the Cobham Avionics and Surveillance Division.

GMS designs and manufactures digital equipment which is used in a variety of applications and is sold primarily into US law enforcement and national security and defence markets, together with the broadcast market. GMS products include video surveillance systems and high definition wireless video technologies suitable for both standard law enforcement and mission critical communications applications. Its defence related products have applications on unmanned aerial and ground vehicles.

GMS is an excellent technological fit with Cobham's existing business, offering complementary products and capabilities which present opportunities for synergistic growth. It provides Cobham with access to a wider customer base and creates a physical presence on the west coast of the USA for its intelligence and surveillance business. On completion, the business will operate under the existing Cobham Surveillance Special Security Arrangement.

Allan Cook, Cobham Chief Executive, said:

"The acquisition of GMS adds proven engineering capability, complementary technologies and exciting opportunities for accelerating growth in the wider homeland security market through our law enforcement and national security business. This will strengthen our position in this rapidly growing market."

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ENQUIRIES

Cobham plc

Allan Cook, Chief Executive +44 (0)1202 882020

Julian Hellebrand, Group Director of Communications +44 (0)1202 857651

Weber Shandwick Financial

Susan Ellis/Louise Robson +44 (0)20 7067 0700

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 10,000 people on five continents, with customers and partners in over 100 countries, and annual revenues of more than £1bn.
 
2. Cobham Avionics and Surveillance Divisiondesigns, qualifies, manufactures, certifies and supports a complete range of electronic products for airborne, marine, land and special purpose applications. The division serves four principal markets: Avionics, Law Enforcement & National Security, SATCOM and France. Included in the product base are fully certified Electronic Flight Instrument Systems with complete cockpit communication/navigation and sensor capability, COSPAS/SARSAT certified marine, air and land Search and Rescue devices and state-of-the-art law enforcement tracking, monitoring and surveillance equipment.

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
ACQUKOURWURWAUR

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