Cohort snaps up 100% of surveillance subsidiary for £14m

AIM-listed Cohort has bought 100% ownership of electronic communications and surveillance technology supplier Marlborough Communications for further payments of £7.1m, which is expected to be earnings enhancing in the current year.

Cohort bought the remaining 49.99% stake of subsidiary Marlborough that it did not already own for an initial £5.1m in cash, as was agreed at the time of its acquisition in July 2014.

So far, including deferred payments to date, £12.1m has been paid from the company’s existing financial resources, with a further £2m to be paid by the end of July due to an earn out linked to Marlborough’s current order book and the minority holding's share of surplus cash.

The acquisition is expected to be earnings enhancing for the remainder of the 2017 financial year ending 30 April.

Marlborough will be a standalone member of the company, alongside Cohort’s other businesses, which all provide communications and surveillance technology to the defence and security industry.

Chief executive Andy Thomis said: "Since joining the group in 2014, Marlborough Communications has 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."

Shares in Cohort were up 1.73% to 440p at 0937 GMT.