Cohort completes acquisition of 100% of Marlborough Communications Ltd (MCL)
Published 1st February 2017
Cohort, the independent technology group, is pleased to announce that it has acquired the minority (49.999%) holding in its subsidiary MCL for a cash consideration of £5.1m in line with the arrangements stated at the time of its acquisition in July 2014.
This takes Cohort’s holding in MCL to 100%, and the total consideration, including deferred consideration paid to date, to £12.1m. The consideration has been paid out of Cohort’s existing financial resources. A further payment of approximately £2.0 million is expected to be made on or before 31 July 2017 reflecting a further earn out linked to MCL’s current order book and the minority holding’s share of the surplus cash in MCL. The impact of this acquisition is expected to be earnings enhancing in the remainder of the financial year ending 30 April 2017.
MCL is a standalone member of the Group, alongside MASS, SEA and EID, and provides specialist communications and surveillance technology to defence and security markets in the UK and overseas. MCL’s existing management team remains in place following the transaction.
Andy Thomis, Chief Executive of Cohort, said:
"We are pleased to have completed the acquisition of MCL. Since joining the Group in 2014, they have demonstrated the quality of their specialist skills and the demand for their products, particularly in the areas of tactical hearing protection and airborne communications. With a good pipeline of opportunities in the remainder of our financial year, we are confident that the transaction will be earnings enhancing.”
This announcement contains inside information.