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Cohort increases interest in Portuguese company EID to 80%

The aerospace, defence and security group has completed the second stage of the acquisition
Fleet of war ships
Shares were 10% higher in early afternoon trading

Cohort PLC (LON:CHRT) has secured a further 23% of Portuguese hi-tech company EID, taking its interest to 80%.

The independent technology group paid €3.974mln for the stake, which represents the second stage of an acquisition process that began in 2015.

The Portuguese government holds the remaining 20%.

EID has been performing well: Andrew Thomas

Cohort chief executive Andrew Thomis said: “Since joining Cohort on 2016, it [EID] has been performing well and the team has demonstrated the quality of its specialist skills.

“With a good pipeline and exciting growth opportunities in the remainder of our financial year, we look forward to benefiting further from the strong customer relationships, high-quality products and excellent people that EID brings to the group.”

The acquisition is being funded from existing cash resources and debt facilities.

Cohort on track for year 

Cohort remains on track to meet expectations for the year ending 30 April 2018.

On 13 December the group will release an interim statement for the six months ended 31 October.

In terms of the acquisition, Cohort has agreed that the Portuguese government will retain rights to protect its shareholding.

These include protecting the interests of the state, including the right to appoint a director to EID’s board.

EID serves global defence and security market

EID designs and manufactures a range of equipment for the global defence and security market.

This includes advanced, high performance command, control and communications equipment.

Customers include the Royal Navy and other NATO navies, including those of Portugal, the Netherlands, Spain and Belgium.

Cohort believes the acquisition of EID fulfils its goal of seeking agile, innovative businesses operating in the defence and security sectors with growth potential and a degree of sustainable competitive advantage.

Cohort employs around 800 core staff

Cohort’s headquarters are in Berkshire and employs around 800 core staff there and at its other operating sites in Bristol, Cambridgeshire, Devon, Lincolnshire, Somerset, Surrey, Scotland and Portugal.

As well as EID, Cohort is the parent company of three other businesses working primarily with defence, wider government and industry clients.

MASS is a specialist defence and technology business, focused mainly on electronic warfare, information systems and cybersecurity.

MCL is an expert in sourcing, design and integration of communications and surveillance technology.

SEA is an advanced electronic systems and software house operating in the defence, transport and offshore energy markets.

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Cohort Timeline

Newswire
November 25 2015
Newswire
September 22 2015

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